Cesca Therapeutics Inc., a stem-cell-medicine company based in Rancho Cordova, said Wednesday it has received a critically needed $15 million investment from a Chinese company.
The investment by Boyalife Group comes as publicly traded Cesca appears to be facing cash flow problems. The investment would normally have required approval of Cesca’s shareholders, according to Nasdaq stock market rules. But the requirement was waived because the delay “would seriously jeopardize the financial viability of the company,” according to Cesca’s news release.
Cesca is developing products for regenerative medicine, including devices for storing and handling harvested stem cells. The company lost $3.4 million on revenue of $2.8 million in its most recent quarter, which ended Sept. 30.
Cesca’s shares closed at 23 cents, up a penny, on the Nasdaq capital market Wednesday. The capital market is reserved for smaller companies.