Pluristem Therapeutics Inc. (NasdaqCM: PSTI; TASE: PLTR) has issued to South Korea-based CHA Bio&Diostech (Kosdaq:CHA) shares of its common stock at a price of $4.16 per Pluristem common share, a premium of 26% over the closing price on December 16, 2013. The shares are subject to a lock up period of one year.

The previously announced agreement with CHA encompasses the use of Pluristem’s PLX-PAD cells in the treatment of two subsets of Peripheral Artery Disease (PAD) in South Korea: Intermittent Claudication (IC) and Critical Limb Ischemia (CLI).

The first clinical study to be performed as part of the agreement will be a Phase II trial in IC which will run in parallel to the Phase II trial being conducted in the USA, Germany and Israel. As previously announced, this study was approved in November 2013 by South Korea’s Ministry of Food and Drug Safety (MFDS). Pursuant to the previously announced agreement with CHA, upon the first regulatory approval for a PLX product in South Korea, Pluristem and CHA Bio will establish a joint venture (JV) co-owned by the parties. The purpose of the JV will be to commercialize PLX cell products in South Korea. Additionally, Pluristem will be able to use the data generated by CHA Bio to pursue the development of PLX product candidates outside of South Korea.