Biostage, Inc. (Nasdaq: BSTG), a biotechnology company developing bioengineered organ implants to treat cancers and other life-threatening conditions of the esophagus, bronchus and trachea, announced today the closing on February 15, 2017 of its previously announced public offering of 20,000,000 shares of common stock and warrants to purchase 20,000,000 shares of common stock, for total gross proceeds of $8.0 million. The offering was priced at $0.40 per share of common stock, with each share of common stock sold with one five-year warrant to purchase one share of common stock, at an exercise price of $0.40 per share.

Rodman & Renshaw, a unit of H.C. Wainwright & Co., acted as exclusive placement agent for the offering.

About Biostage

Biostage is a biotechnology company developing bioengineered organ implants based on the company's new Cellframe™ technology which combines a proprietary biocompatible scaffold with a patient's own stem cells to create Cellspan™ organ implants. Cellspan implants are being developed to treat life-threatening conditions of the esophagus, bronchus or trachea with the hope of dramatically improving the treatment paradigm for patients. Based on its preclinical data, Biostage has selected life-threatening conditions of the esophagus as the initial clinical application of its technology.