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Cellular Biomedicine Group Reports Full-Year and Fourth Quarter 2014 Financial Results

SHANGHAI, China and PALO ALTO, Calif., March 31, 2015 (GLOBE NEWSWIRE) -- Cellular Biomedicine Group Inc. (Nasdaq:CBMG) ("CBMG" or the "Company"), a biomedicine firm engaged in the development of effective treatments for degenerative and cancerous diseases, today reported full-year and fourth quarter 2014 financial results for the period ended December 31, 2014.

"2014 laid the foundation for building a world-class biotechnology enterprise that was marked by achieving notable corporate and clinical milestones and meaningful acquisitions that will drive our business momentum as we move into 2015," said William (Wei) Cao, PhD, BM, Chief Executive Officer of Cellular Biomedicine Group. "In addition to our successful listing on NASDAQ, we accelerated the growth of our Immuno-Oncology platform through the acquisition of Agreen Biotech Co. Ltd. China ("AG"), the acquisition of third generation Chimeric Antigen Receptor T cell (CAR-T), anti-PD-1, CD19 and aAPC cancer immunotherapy technologies from Persongen Biotechnology Ltd., and the acquisition of four CAR-T therapies with corresponding Phase I clinical data and manufacturing knowledge from Chinese PLA General Hospital ("PLAGH", Beijing, also known as "301 Hospital"). The Company's lead product candidate from our Human Adipose-Derived Mesenchymal Progenitor Cell (haMPC) Platform, ReJoinTM for the treatment of Knee Osteoarthritis (KOA), reported positive 12 month results from its Phase IIa clinical trials in 2014 and we are encouraged by the interim Phase IIb clinical data released in the first quarter of 2015 which continues to show excellent progress. We look forward to 2015 as we continue to amalgamate novel cancer technology leaders, deliver promise from our clinical trials to serve several large unmet medical needs in China and seek to evolve into a leader in the biotechnology field."

Tony (Bizuo) Liu, Chief Financial Officer of the Company, commented, "I am pleased to also announce the successful completion of an $18 million private placement transaction in 2014 and $20 million in 2015 which fortified our cash position. We will continue to leverage our financial resources to expand our technology portfolio, strengthen our clinical pipeline, pursue strategic acquisitions, add world-class scientific talent and evaluate multi-national licensing opportunities. We believe these strategic initiatives will further validate our vision of becoming an innovative cell-therapy company that delivers value to our shareholders."

Corporate and Clinical Developments of 2014 and Early 2015

During 2014 and 2015 to date, Cellular Biomedicine Group achieved the following milestones and significant corporate events:

Clinical Developments

1. Announced positive clinical data from Phase I of its CAR-T immuno-oncology clinical development programs of CAR-T CD19 for Acute Lymphocytic Leukemia (B-cell ALL) and CAR-T CD20 for Advanced Diffuse Large B Cell Lymphoma (DLBCL)

2. Launched a clinical study on human adipose derived mesenchymal progenitor cell (haMPC) therapy for Cartilage Damage (CD) resulting from osteoarthritis (OA) or sports injury, which study also serves as a supporting study of ReJoinTM for Knee Osteoarthritis (KOA)

3. Released positive 12-month follow-up data analysis of Phase I/IIa clinical trial for ReJoinTM human adipose-derived mesenchymal progenitor cell (haMPC) therapy for KOA

4. Announced positive interim 24-week clinical data from the Phase IIb trial of its ReJoinTM haMPC therapy for KOA

Corporate Developments

5. The Company successfully listed onto Nasdaq Capital Markets as the first pure-play cell therapy company from China

6. Closed private placement transactions for total gross proceeds of approximately $38 Million

7. Expanded Intellectual Property portfolio to 69 patents in various stages of approval in China, U.S. and through the Patent Cooperation Treaty (PCT), including one granted US Patent and 15 granted China patents

Fourth Quarter and 2014 Financial Performance

1. Cash Position: Cash and liabilities at December 31, 2014 of approximately $14.8 million and $4.5 million, respectively. (Subsequently, in March 2015, the Company closed a private placement transaction for total gross proceeds of approximately $20,000,000)

2. Net Cash Used in Operating Activities: Q4 and full-year 2014 operating cash burn of $2.2 million and $10.3 million, respectively, compared to $1.3 million and $8.5 million for the same periods in 2013

3. Revenue: Q4 and full-year 2014 revenue of $0.4 million and $0.6 million, respectively, compared to $0.1 million and $0.2 million for the same periods in 2013

4. G&A Expenses: Q4 and full-year 2014 general and administrative expenses of $3.3 million and $8.4 million, respectively, compared to $2.2 million and $9.3 million for the same periods in 2013. Excluding the stock-based compensation of $1.9 million and $1.5 million recorded in G&A expenses for full-year 2014 and 2013, the G&A expenses would have been $6.5 million and $7.8 respectively.

5. R&D Expenses: Q4 and full-year 2014 research and development expenses of $0.8 million and $2.7 million, respectively, compared to $0.6 million and $1.9 million for the same periods a year ago, the increase mainly attributable to significant activities surrounding the development of our biomedicine intellectual property, including the implementation of Phase IIb clinical trials for KOA and launch of the clinical trial for cartilage damage

6. Net Loss: Q4 and full-year 2014 net loss allocable to common stock holders was $5.5 million and $15.5 million, respectively, compared to $6.5 million and $13.8 million for the same periods in 2013. Excluding the stock-based compensation of $1.9 million and $1.5 million recorded for full-year 2014 and 2013, the net loss would have been $13.6 million and $12.3 million respectively.

Primary 2015 Operating Objectives:

1. Publish CAR-T Phase I Clinical Data of CD30 for Hodgkin's lymphoma and EGFR (HER1) for advanced lung cancer

2. Initiate CAR-T Phase II Clinical Trials of CD19, CD20, CD30 and EGFR (HER1)

3. Expand GMP facilities to 47,000 ft2

4. Release 48-week follow-up data from ReJoinTM Phase IIb Clinical Trial

About Cellular Biomedicine Group

Cellular Biomedicine Group, Inc. develops proprietary cell therapies for the treatment of certain degenerative diseases and cancers. Our developmental stem cell, progenitor cell, and immune cell projects are the result of research and development by scientists and doctors from China and the United States. Our flagship GMP facility, consisting of eight independent cell production lines, is designed, certified and managed according to U.S. standards. To learn more about CBMG, please visit: www.cellbiomedgroup.com.

Forward-Looking Statements

Statements in this press release relating to plans, strategies, trends, specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "expects," "plans," "intends," "estimates," "potential," or "continue," or similar terms or the negative of these terms. Although CBMG believes the expectations reflected in the forward-looking statements are reasonable, they cannot guarantee that future results, levels of activity, performance or achievements will be obtained. CBMG does not have any obligation to update these forward-looking statements other than as required by law.

CELLULAR BIOMEDICINE GROUP, INC.
(FORMERLY EASTBRIDGE INVESTMENT GROUP CORPORATION)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the Year Ended
December 31,
2014 2013
Net sales and revenue $564,377 $204,914
Operating expenses:
Cost of sales 213,243 296,212
General and administrative 8,413,251 9,314,143
Selling and marketing 280,595 57,670
Research and development 2,671,932 1,890,506
Other general expenses 1,427,840 --
Total operating expenses 13,006,861 11,558,531
Operating loss (12,442,484) (11,353,617)
Other income (expense):
Interest income 15,043 1,294
Other income (expense) 71,982 (6,196)
Total other income (expense) 87,025 (4,902)
Loss from continuing operations before taxes (12,355,459) (11,358,519)
Income tax provision -- --
Loss from continuing operations (12,355,459) (11,358,519)
Loss on discontinued operations, net of tax (3,119,152) (2,438,514)
Net loss $(15,474,611) $(13,797,033)
Other comprehensive income (loss):
Cumulative translation adjustment 15,254 78,650
Unrecognized gain (loss) on investments 1,611,045 (198,200)
Total other comprehensive income (loss): 1,626,299 (119,550)
Comprehensive loss $(13,848,312) $(13,916,583)
Earnings (loss) per share for continuing operations:
Basic $(1.43) $(1.96)
Diluted $(1.43) $(1.96)
Earnings (loss) per share discontinued operations:
Basic $(0.36) $(0.42)
Diluted $(0.36) $(0.42)
Earnings (loss) per share net loss:
Basic $(1.79) $(2.38)
Diluted $(1.79) $(2.38)
Weighted average common shares outstanding:
Basic 8,627,094 5,792,888
Diluted 8,627,094 5,792,888
CELLULAR BIOMEDICINE GROUP, INC.
(FORMERLY EASTBRIDGE INVESTMENT GROUP CORPORATION)
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2014 2013
Assets
Cash and cash equivalents $14,770,584 $7,175,215
Accounts receivable 141,029 10,581
Other receivable 135,957 78,521
Inventory 372,249 119,119
Prepaid expenses 565,299 56,911
Other current assets 110,347 134,661
Total current assets 16,095,465 7,575,008
Investments 6,886,033 5,105,891
Property, plant and equipment, net 1,280,410 1,014,805
Goodwill 7,678,789 3,299,566
Intangibles, net 11,156,676 601,456
Long-term prepaid expenses and other assets 587,729 --
Total assets $43,685,102 $17,596,726
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $426,917 $213,891
Accrued expenses 2,074,384 503,717
Tax payable 814,288 1,164,747
Advances payable to related party 36,254 67,999
Other current liabilities 724,479 251,299
Total current liabilities 4,076,322 2,201,653
Other non-current liabilities 452,689 --
Total liabilities 4,529,011 2,201,653
Commitments and Contingencies
Stockholders' equity:
Preferred stock, par value $.001, 50,000,000 shares
authorized; none issued and outstanding as of
December 31, 2014 and 2013, respectively -- --
Common stock, par value $.001, 300,000,000 shares authorized;
10,990,335 and 7,382,797 issued and outstanding
as of December 31, 2014 and 2013, respectively 10,990 7,383
Additional paid in capital 75,467,316 37,861,593
Accumulated deficit (37,890,590) (22,415,979)
Accumulated other comprehensive income (loss) 1,568,375 (57,924)
Total stockholders' equity 39,156,091 15,395,073
Total liabilities and stockholders' equity $43,685,102 $17,596,726
CELLULAR BIOMEDICINE GROUP, INC.
(FORMERLY EASTBRIDGE INVESTMENT GROUP CORPORATION)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended
December 31,
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(15,474,611) $(13,797,033)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 1,190,505 841,235
Loss on disposal of assets 257,672 --
Stock based compensation expense 1,949,908 4,381,077
Other than temporary impairment 1,427,840 --
Impairment of goodwill 3,299,566 4,258,967
Third party services received in exchange for disposition of investment stock -- 83,334
Loss recognized in excess of cash received on disposition of investment stock 5,913 138,909
Value of stock received for services (1,610,000) (3,500,000)
Deferred tax -- (76,544)
Changes in operating assets and liabilities:
Accounts receivable 20,645 10,102
Other receivable (25,638) 50,160
Inventory (78,310) (81,878)
Prepaid expenses (494,057) (38,793)
Other current assets 24,314 (84,661)
Investments 7,150 --
Long-term prepaid expenses and other assets (504,678) 134,229
Accounts payable 165,517 40,862
Accrued expenses 409,109 (739,839)
Other current liabilities (694,131) 186,464
Taxes payable (176,583) (10,121)
Deferred revenue -- (251,834)
Net cash used in operating activities (10,299,869) (8,455,364)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash acquired (1,485,548) --
Purchases of intangibles (8,989) (5,828)
Purchases of assets (311,625) (147,211)
Net cash used in investing activities (1,806,162) (153,039)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of common stock 19,700,933 11,561,386
Proceeds from exercise of stock options 19,383 --
Repayment of advances from affiliate (31,745) (1,250)
Advances from affiliate -- 36,614
Net cash provided by financing activities 19,688,571 11,596,750
EFFECT OF EXCHANGE RATE CHANGES ON CASH 12,829 41,972
INCREASE IN CASH AND CASH EQUIVALENTS 7,595,369 3,030,319
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 7,175,215 4,144,896
CASH AND CASH EQUIVALENTS, END OF PERIOD $14,770,584 $7,175,215
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes $460,924 $--
Non cash financing and investing activities:
Issuance of company stock for accrued liabilities and advances $-- $149,475
Issuance of company stock for acquisition of patent $1,442,850 $--
Issuance of company stock for acquisition of business $14,496,256 $--

CONTACT: Sarah Kelly Director of Corporate Communications, CBMG +1 650 566-5064 sarah.kelly@cellbiomedgroup.com Vivian Chen Managing Director Investor Relations, Grayling +1 347-481-3711 vivian.chen@grayling.com

Source:Cellular Biomedicine Group Inc.