SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
SCHEDULE
14A INFORMATION
Proxy
Statement Pursuant to Section 14(a) of the Securities
Exchange
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(Amendment
No. )
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Preliminary
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Definitive
Proxy Statement
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Definitive
Additional Materials
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Soliciting
Material Pursuant to §240.14a-12
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NEOSTEM,
INC.
(Name of
the Registrant as Specified In Its Charter)
(Name(s)
of Person(s) Filing Proxy Statement, if other than the Registrant)
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of Filing Fee (Check the appropriate box):
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The following letter was first sent to security holders on or about January
6, 2011:
PLEASE
REFER TO THE 2ND PAGE OF
THIS LETTER FOR IMPORTANT
INFORMATION
REGARDING VOTING AT NEOSTEM’S JANUARY 18, 2011
SPECIAL
MEETING OF SHAREHOLDERS
January
6, 2011
Dear
Shareholders,
As we
ring in the New Year, we at NeoStem are looking forward with great anticipation
to a rewarding 2011. It also gives me great pleasure to take this
opportunity to provide to you a recap of some of our highlights for 2010 as well
as keep you up to date with some of the exciting events we have planned for
2011.
Looking
back, 2010 held many accomplishments for NeoStem. In November 2010,
we raised $19 million from two concurrent offerings. These funds will help us to
grow our revenue lines of businesses in the US and China, including the closing
of our acquisition of Progenitor Cell Therapy LLC, and further assist in our
growth.
NeoStem
was named “Best Stem Cell Company, 2010” in The New Economy’s Biotech
Awards. Additionally, The Vatican’s Pontifical Council has undertaken
to commit $1 million to joint ventures with NeoStem and the Stem for Life Foundation, a
not-for-profit entity NeoStem participated in founding, to expand research and
raise awareness of adult stem cell therapies.
We also
began generating revenues from what we believe will be just the beginning of a
pipeline of stem cell-based regenerative medicine therapies, a key element of
our growth strategy in both the United States and China. This began with our
collaboration with Wendeng Hospital in People's Republic of China (PRC) whereby
patients are being offered the benefit of the latest technology from the US in
the treatment of a range of orthopedic conditions. In November
2010, the Weihai Municipal Labor Bureau Medical Insurance Office approved
Wendeng Hospital's application for reimbursement whereby patients are eligible
to receive reimbursement for up to 80% of the cost of the orthopedic procedure
under the new technology category. We believe the reimbursement by the Chinese
government should positively impact our stem cell revenue in 2011.
The
network of collaborating hospitals in China continues to grow with an agreement
with Shijiazhuang Third Hospital in the PRC entered into in December 2010 to
offer to Chinese citizens of Shijiazhuang the ability to receive adult stem cell
treatments for arthritis and orthopedic conditions based on our exclusively
licensed technology for Asia.
The
planned closing this month of the Company’s acquisition of Progenitor Cell
Therapy, LLC is a significant step in NeoStem's efforts to develop a
'one-stop-shop' global network of cell therapy core competencies by adding cell
therapy manufacturing and storage facilities as well as integrated regulatory
compliant distribution capacity for the evolving cell therapy industry.
The addition of PCT will allow NeoStem to focus on growing the cord blood
and adult stem cell banking, cellular manufacturing and therapeutic business, as
well as expand our businesses in Asia and other countries, enabling NeoStem to
continue to develop its intellectual property and acquire new
technology.
The
ongoing relocation to Suzhou Erye Pharmaceutical’s new manufacturing facility
continues to progress and should be completed in 2011. This will
significantly increase capacity with the goal of expanding generic
pharmaceutical sales in the upcoming years.
420
Lexington Avenue │ Suite 450 │ NYC│ 10170 │ Phone: (212) 584-4180 │ Fax: (646)
514-7787
www.neostem.com
We would
like to thank all our shareholders for their continued support. We
look forward to a prosperous year and exciting prospects for 2011.
Sincerely,
Robin
Smith, MD MBA
___________________________________________________
IMPORTANT
INFORMATION REGARDING VOTING AT THE NEOSTEM JANUARY 18, 2011
SPECIAL
MEETING OF SHAREHOLDERS
You
should have recently received proxy materials in connection with the 2011
Special Meeting of Stockholders of NeoStem, Inc. to be held on Tuesday, January
18, 2011 at the offices of NeoStem, Inc., 420 Lexington Avenue, Suite 450, New
York, NY 10170. In case you missed it in the holiday rush, we are
asking our stockholders to vote on several important proposals, and want to make
sure that you review those proposals and vote. You should refer to
the proxy materials previously made available to you for additional information
on these matters.
The
Board of Directors unanimously recommends a “FOR” vote on all
proposals.
Regardless
of the number of shares you own, it is more important than ever that your vote
is represented at the Special Meeting. Your vote matters to us and we
need your support.
To assist
our shareholders with voting, we have engaged Alliance Advisors, a proxy
solicitation firm, for a fee of approximately $5000 plus reasonable and approved
expenses. If you need assistance with the voting of your
shares please contact Alliance Advisors toll free at: (877)
503-8435.
Please vote your
shares now so that your vote can be counted without delay. Voting is
easy. You may use one of the options below to ensure that your vote is promptly
recorded.
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VOTE
VIA THE INTERNET: You may cast your vote by logging onto
the website listed on the enclosed proxy voting form and follow the
instructions to cast your vote.
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VOTE
BY TOUCH-TONE PHONE: You may cast your vote by calling the
toll-free number on the enclosed proxy voting form and follow the
instructions to cast your vote.
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VOTE
BY MAIL: You may cast your vote by mail by completing, signing,
dating and mailing the enclosed proxy card in the postage-prepaid return
envelope provided.
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YOUR
PARTICIPATION IS IMPORTANT - PLEASE VOTE TODAY!
Your
proxy must be received by 11:59 pm EST on January 17th to be
sure it is counted at the Special Meeting.
This
letter contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements reflect
management's current expectations, as of the date of this letter, and involve
certain risks and uncertainties. Forward looking statements include statements
herein with respect to the successful execution of the Company's strategy, as
well as other advances in the Company's business, about which no assurances can
be given. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of certain factors,
including those discussed under the heading “Risk Factors” and elsewhere in the
Joint Proxy Statement / Prospectus you have received in your proxy materials, as
well as in the Company's periodic filings made with the Securities and Exchange
Commission. The Company's further development is highly dependent on future
medical and research developments and market acceptance, which is outside its
control.
420
Lexington Avenue │ Suite 450 │ NYC│ 10170 │ Phone: (212) 584-4180 │ Fax: (646)
514-7787
www.neostem.com