Cellular Biomedicine's Stock Surges After Company Receives Strategic Investment

Shares of Cellular Biomedicine Group Inc (NASDAQ: CBMG), a biomedical company that is engaged in the development of new treatments for cancerous and degenerative diseases, surged by more than 6 percent on Thursday.

Cellular Biomedicine announced it has received a $43.13 million investment from Wuhan Dangdai Science & Technology Industries Group for 2.27 million shares of the company's stock. The agreed upon price per share was $19, representing a 10.4 percent premium over Wednesday's closing price.

"We appreciate the huge vote of confidence from DANGDAI. We are delighted that such an astute, established conglomerate with a major pharmaceutical presence is making this strategic investment in CBMG. Their pharmaceutical portfolio company has a large direct sales force in China with access to thousands of hospitals. The funding will augment resources for our long-term clinical trials in stem cell indications and multiple T-cell Chimeric Antigen Receptor ("CAR-T") trials in liquid and solid tumor cancers," said Tony (Bizuo) Liu, incoming Chief Executive Officer (current CFO) of CBMG.