RepliCel Life Sciences Inc. (REPCF) announced on Thanksgiving that it would convert all 13 million shares of Class C stock into 2.6 million shares of common stock. These common shares are going to be subject to a timed release with 15 percent being released on the first day of each fiscal quarter beginning in January of 2013. All told, this will bring the total shares of common stock in RepliCel up to 43,150,006 shares. The company has been developing a safe and non-invasive cell-based hair regeneration treatment that's effective for both men and women. The conversion of these shares at a 5:1 basis should make the share structure more appealing as the company seeks financing for the development of its Phase IIb clinical trials.
Exciting Research Underway
RepliCel began its first in-man, Phase I/IIa clinical trial in Georgia in December of 2010. The process being tested was developed by German scientists Dr. Rolf Hoffmann and Dr. Kevin McElwee, and it has the potential to function as a baldness cure for both men and women. The procedure involves the removal of a few healthy hair follicles from the back of the scalp, isolating dermal sheath cup cells from the cup of the hair follicle, growing these cells in a culture until millions of new cells are formed, and then injecting the cells into the affected areas. If successful, the procedure could be used to spark the growth of natural hair in patients both male and female, offering one of the first ever effective treatments for female pattern baldness.
Early Research Shows Results
Dr. Hoffman, the chief scientist at RepliCel, has already gotten results when testing the procedure in SCID mice. Now, as they begin clinical trials with people, Hoffman is eager to ensure that the procedure is safe and effective. "For me, this technology means a lot, because then we could say we were the first company that was able to really deliver an effective treatment for hair loss; especially to women," Hoffman said in an interview. "I run a hair clinic and usually 90 percent of the patients here are women, and they are so desperate for a treatment. This technology could change lives tremendously for many, many women, so this would make me very proud. "