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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event
reported):&nbsp;&nbsp;June 18, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NEOSTEM, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Delaware</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or Other Jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">of Incorporation)</P></TD>
    <TD STYLE="width: 34%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">001-33650</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Commission</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">File Number)</P></TD>
    <TD STYLE="width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">22-2343568</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(IRS Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>420 Lexington Avenue, Suite 450, New
York, New York&nbsp;10170</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of Principal Executive Offices)(Zip
Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>(212) 584-4180</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant's Telephone Number</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">&uml;</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">x</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">&uml;</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">&uml;</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01. Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In its Current Report on Form 8-K dated
and filed with the Securities and Exchange Commission on June 18, 2012, NeoStem, Inc. (the &ldquo;<U>Company</U>&rdquo; or &ldquo;<U>NeoStem</U>&rdquo;)
announced the signing of the Equity Purchase Agreement dated as of June 18, 2012 (the &ldquo;<U>Equity Purchase Agreement</U>&rdquo;),
by and among the Company, the Company&rsquo;s wholly-owned subsidiary China Biopharmaceuticals Holdings, Inc. (&ldquo;<U>CBH</U>&rdquo;),
Fullbright Finance Limited, a limited liability company organized under the laws of the British Virgin Islands (&ldquo;<U>Fullbright</U>&rdquo;),
Suzhou Erye Economy &amp; Trading Co., Ltd., a limited liability company organized under the laws of the People&rsquo;s Republic
of China (&ldquo;<U>EET</U>&rdquo; and together with Fullbright, each a &ldquo;<U>Purchaser</U>&rdquo; and collectively, the &ldquo;<U>Purchasers</U>&rdquo;),
and Suzhou Erye Pharmaceutical Co., Ltd., a Sino-foreign equity joint venture with limited liability organized under the laws of
the People&rsquo;s Republic of China (&ldquo;<U>Erye</U>&rdquo;), providing for the sale by NeoStem and CBH to the Purchasers (the
&ldquo;<U>Erye Sale</U>&rdquo;) of NeoStem&rsquo;s entire 51% ownership interest in Erye (the &ldquo;<U>Erye Interest</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To update the disclosure appearing under
Item 1.01 of the June 18, 2012 Form 8-K, the Company today announced that it has received from the Purchasers the initial $1,228,000
down payment (10% of the total cash purchase price), which was due within 15 days of the execution of the Equity Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 5.02. Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(e) Compensatory Arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 5, 2012 (the &ldquo;<U>Grant Date</U>&rdquo;),
the Compensation Committee of the Company&rsquo;s Board of Directors granted Robin L. Smith, M.D., the Company&rsquo;s Chief Executive
Officer and Chairman of the Board, an option (the &ldquo;Option&rdquo;) to purchase 700,000 shares of NeoStem common stock at an
exercise price of $.52 per share (the closing price of a share of NeoStem common stock on the NYSE Mkt on the Grant Date), and
issued 150,000 shares (the &ldquo;Shares&rdquo;) to her pursuant and subject to the terms of the Company&rsquo;s 2009 Equity Compensation
Plan. The Option and Shares were fully vested on the Grant Date and the Option has a term of ten years despite termination of employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 8.01. Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 9, 2012, NeoStem issued a press
release that included a letter to the shareholders of the Company. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Effective as of June 25, 2012, NeoStem
appointed Martin Schmieg, age 50, as the Company&rsquo;s Vice President, Corporate Development. Mr. Schmieg, who will serve
the Company in a full-time capacity, brings to the Company over 25 years of experience in business development for health
care product and medical technology companies ranging from early-stage privately funded technology ventures to market driven
public companies. While originally trained in accounting and finance, Mr. Schmieg&rsquo;s career has also included hands-on
management of research and development, regulatory, manufacturing, marketing, sales, customer service, and business
development functions. Over the past two years, Mr. Schmieg has worked as a consultant for companies including Besser
Consulting, LLC, Beckman Coulter Genomics (a Beckman Coulter company), Cardionet, Inc. (NASDAQ: BEAT), DakDak Photoaging
Technologies, Inc. (acquired by Charles River Laboratories, Inc. (NYSE:CRL) in 2002), and Carl Zeiss. From March 2009 through
September 2010, he served as President of Nuvilex, Inc. (OTCQB: NVLX) which merged with Freedom2, Inc. where he served as
President and CEO from April 2006 through March 2009. He has also held senior management positions with Isolagen, Inc. (now
Fibrocell Science, Inc. (OTC BB: FCSC), Sirna Therapeutics, Inc. (acquired by Merck &amp; Co. (NYSE: MRK) in 2006), Advanced
Bionics Corporation (acquired by Sonova Holdings AG (SIX: SOON) in 2009) and Cytometrics, Inc, (acquired by Lekam Medical
Limited) where he was also a co-founder and served on the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Schmieg has expertise in financing,
mergers and acquisitions and the development of companies with novel technologies from lab to market. Selected transactions include
the multi-billion dollar sale of Advanced Bionics Corporation to Boston Scientific, the development and market launch of the Cytoscan
instrument for observation and measurement of the human micro-circulatory system, and establishing credible relationships with
the venture capital and investment banking communities. Martin has also practiced as a Certified Public Accountant. He is a graduate
of LaSalle University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Information and Where to Find It:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the proposed Erye Sale,
the Company will be filing a proxy statement and other relevant documents with the SEC. INVESTORS ARE URGED TO READ THE PROXY STATEMENT
THAT WILL BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS
FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE PROPOSED TRANSACTION. Investors will be able to obtain
the proxy statement (when it is available) and other relevant documents filed with the SEC free of charge at the SEC&rsquo;s website
at www.sec.gov. In addition, copies of the proxy statement (when available) and other documents filed by the Company with the SEC
with respect to the proposed transaction may be obtained free of charge by directing a request to: NeoStem, Inc., 420 Lexington
Avenue, Suite 450, New York, NY 10170, Attn: Catherine M. Vaczy, Vice President and General Counsel, (212) 584-4180.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Participants in the Solicitation:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This Current Report on Form 8-K may be deemed
to be solicitation material in respect of the proposed transaction. The Company and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from the Company&rsquo;s stockholders in connection with the proposed
transaction. Information concerning the Company&rsquo;s directors and executive officers is set forth in the Company&rsquo;s Annual
Report on Form 10-K, filed by the Company with the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A, filed by
the Company with the SEC on April 30, 2012. Investors may obtain additional information regarding the interests of such persons
who may, under the rules of the SEC, be considered to be participants in the solicitation of the Company&rsquo;s stockholders in
connection with the proposed transaction by reading the proxy statement when it becomes available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Forward Looking Statements:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: windowtext">This Current
Report on Form 8-K, including Exhibit 99.1 hereto, contains &ldquo;forward-looking&rdquo; statements within the meaning of the
Private Securities Litigation Reform Act of 1995.&nbsp;&nbsp;Forward-looking statements are typically preceded by words such as
&ldquo;believes,&rdquo; &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;intends,&rdquo; &ldquo;will,&rdquo; &ldquo;may,&rdquo;
&ldquo;should,&rdquo; or similar expressions, although some forward-looking statements are expressed differently.&nbsp;&nbsp;Forward-looking
statements represent the Company&rsquo;s management judgment regarding future events.&nbsp;&nbsp;Although the Company believes
the expectations reflected in such forward-looking statements are reasonable, the Company can give no assurance that such expectations
will prove to be correct.&nbsp;&nbsp;All statements other than the statements of historical fact included in this Current Report
on Form 8-K are forward-looking statements.&nbsp;&nbsp;The Company cannot guarantee the accuracy of the forward-looking statements,
and you should be aware that the Company&rsquo;s actual results could differ materially from those contained in the forward-looking
statements due to a number of factors. Important factors that might cause such a difference include, but are not limited to, failure
of NeoStem&rsquo;s stockholders to approve the Erye Sale, failure to obtain PRC regulatory approvals in connection with consummation
of the Erye Sale, termination of the Agreement prior to Closing, the Company&rsquo;s need for outside financing to meet capital
requirements, </FONT><FONT STYLE="color: #010000">the Company's or its partners&rsquo; successful development of cell therapeutics,
as well as the future of the cell therapeutics industry and the rate at which such industry may grow</FONT><FONT STYLE="color: windowtext">
and other events and factors disclosed previously and from time to time in the Company&rsquo;s filing with the SEC, including NeoStem&rsquo;s
Annual Report on Form 10-K, filed by the Company with the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A,
filed by the Company with the SEC on April 30, 2012, the Company&rsquo;s Quarterly Report on Form 10-Q, filed by the Company with
the SEC on May 11, 2012, and other factors identified from time to time in the Company&rsquo;s periodic filings with the SEC. NeoStem
does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01.&nbsp;&nbsp;Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(d)&nbsp;&nbsp;Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are filed with this Current Report on
Form 8-K:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; font-size: 10pt; font-weight: bold">Exhibit<BR>
No.</TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 90%; border-bottom: windowtext 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Description</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">99.1</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">Press Release of NeoStem, Inc. dated July 9, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly&nbsp;caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">NEOSTEM, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 31%">&nbsp;</TD>
    <TD STYLE="width: 14%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ Catherine M. Vaczy</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Name:</TD>
    <TD COLSPAN="2">Catherine M. Vaczy, Esq.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD COLSPAN="2">Vice President and General Counsel</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dated:&nbsp;&nbsp;July 9, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported):  June 18, 2012
NEOSTEM, INC.
(Exact Name of Registrant as Specified in
Charter)
Delaware
(State or Other Jurisdiction
of Incorporation)
001-33650
(Commission
File Number)
22-2343568
(IRS Employer
Identification No.)
420 Lexington Avenue, Suite 450, New
York, New York 10170
(Address of Principal Executive Offices)(Zip
Code)
(212) 584-4180
Registrant's Telephone Number
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
x
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
In its Current Report on Form 8-K dated
and filed with the Securities and Exchange Commission on June 18, 2012, NeoStem, Inc. (the "
Company
" or "
NeoStem
")
announced the signing of the Equity Purchase Agreement dated as of June 18, 2012 (the "
Equity Purchase Agreement
"),
by and among the Company, the Company's wholly-owned subsidiary China Biopharmaceuticals Holdings, Inc. ("
CBH
"),
Fullbright Finance Limited, a limited liability company organized under the laws of the British Virgin Islands ("
Fullbright
"),
Suzhou Erye Economy & Trading Co., Ltd., a limited liability company organized under the laws of the People's Republic
of China ("
EET
" and together with Fullbright, each a "
Purchaser
" and collectively, the "
Purchasers
"),
and Suzhou Erye Pharmaceutical Co., Ltd., a Sino-foreign equity joint venture with limited liability organized under the laws of
the People's Republic of China ("
Erye
"), providing for the sale by NeoStem and CBH to the Purchasers (the
"
Erye Sale
") of NeoStem's entire 51% ownership interest in Erye (the "
Erye Interest
").
To update the disclosure appearing under
Item 1.01 of the June 18, 2012 Form 8-K, the Company today announced that it has received from the Purchasers the initial $1,228,000
down payment (10% of the total cash purchase price), which was due within 15 days of the execution of the Equity Purchase Agreement.
Item 5.02. Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) Compensatory Arrangements.
On July 5, 2012 (the "
Grant Date
"),
the Compensation Committee of the Company's Board of Directors granted Robin L. Smith, M.D., the Company's Chief Executive
Officer and Chairman of the Board, an option (the "Option") to purchase 700,000 shares of NeoStem common stock at an
exercise price of $.52 per share (the closing price of a share of NeoStem common stock on the NYSE Mkt on the Grant Date), and
issued 150,000 shares (the "Shares") to her pursuant and subject to the terms of the Company's 2009 Equity Compensation
Plan. The Option and Shares were fully vested on the Grant Date and the Option has a term of ten years despite termination of employment.
Item 8.01. Other Events.
On July 9, 2012, NeoStem issued a press
release that included a letter to the shareholders of the Company. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference.
Effective as of June 25, 2012, NeoStem
appointed Martin Schmieg, age 50, as the Company's Vice President, Corporate Development. Mr. Schmieg, who will serve
the Company in a full-time capacity, brings to the Company over 25 years of experience in business development for health
care product and medical technology companies ranging from early-stage privately funded technology ventures to market driven
public companies. While originally trained in accounting and finance, Mr. Schmieg's career has also included hands-on
management of research and development, regulatory, manufacturing, marketing, sales, customer service, and business
development functions. Over the past two years, Mr. Schmieg has worked as a consultant for companies including Besser
Consulting, LLC, Beckman Coulter Genomics (a Beckman Coulter company), Cardionet, Inc. (NASDAQ: BEAT), DakDak Photoaging
Technologies, Inc. (acquired by Charles River Laboratories, Inc. (NYSE:CRL) in 2002), and Carl Zeiss. From March 2009 through
September 2010, he served as President of Nuvilex, Inc. (OTCQB: NVLX) which merged with Freedom2, Inc. where he served as
President and CEO from April 2006 through March 2009. He has also held senior management positions with Isolagen, Inc. (now
Fibrocell Science, Inc. (OTC BB: FCSC), Sirna Therapeutics, Inc. (acquired by Merck & Co. (NYSE: MRK) in 2006), Advanced
Bionics Corporation (acquired by Sonova Holdings AG (SIX: SOON) in 2009) and Cytometrics, Inc, (acquired by Lekam Medical
Limited) where he was also a co-founder and served on the board of directors.
Mr. Schmieg has expertise in financing,
mergers and acquisitions and the development of companies with novel technologies from lab to market. Selected transactions include
the multi-billion dollar sale of Advanced Bionics Corporation to Boston Scientific, the development and market launch of the Cytoscan
instrument for observation and measurement of the human micro-circulatory system, and establishing credible relationships with
the venture capital and investment banking communities. Martin has also practiced as a Certified Public Accountant. He is a graduate
of LaSalle University.
Additional Information and Where to Find It:
In connection with the proposed Erye Sale,
the Company will be filing a proxy statement and other relevant documents with the SEC. INVESTORS ARE URGED TO READ THE PROXY STATEMENT
THAT WILL BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS
FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE PROPOSED TRANSACTION. Investors will be able to obtain
the proxy statement (when it is available) and other relevant documents filed with the SEC free of charge at the SEC's website
at www.sec.gov. In addition, copies of the proxy statement (when available) and other documents filed by the Company with the SEC
with respect to the proposed transaction may be obtained free of charge by directing a request to: NeoStem, Inc., 420 Lexington
Avenue, Suite 450, New York, NY 10170, Attn: Catherine M. Vaczy, Vice President and General Counsel, (212) 584-4180.
Participants in the Solicitation:
This Current Report on Form 8-K may be deemed
to be solicitation material in respect of the proposed transaction. The Company and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from the Company's stockholders in connection with the proposed
transaction. Information concerning the Company's directors and executive officers is set forth in the Company's Annual
Report on Form 10-K, filed by the Company with the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A, filed by
the Company with the SEC on April 30, 2012. Investors may obtain additional information regarding the interests of such persons
who may, under the rules of the SEC, be considered to be participants in the solicitation of the Company's stockholders in
connection with the proposed transaction by reading the proxy statement when it becomes available.
Forward Looking Statements:
This Current
Report on Form 8-K, including Exhibit 99.1 hereto, contains "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995.  Forward-looking statements are typically preceded by words such as
"believes," "expects," "anticipates," "intends," "will," "may,"
"should," or similar expressions, although some forward-looking statements are expressed differently.  Forward-looking
statements represent the Company's management judgment regarding future events.  Although the Company believes
the expectations reflected in such forward-looking statements are reasonable, the Company can give no assurance that such expectations
will prove to be correct.  All statements other than the statements of historical fact included in this Current Report
on Form 8-K are forward-looking statements.  The Company cannot guarantee the accuracy of the forward-looking statements,
and you should be aware that the Company's actual results could differ materially from those contained in the forward-looking
statements due to a number of factors. Important factors that might cause such a difference include, but are not limited to, failure
of NeoStem's stockholders to approve the Erye Sale, failure to obtain PRC regulatory approvals in connection with consummation
of the Erye Sale, termination of the Agreement prior to Closing, the Company's need for outside financing to meet capital
requirements,
the Company's or its partners' successful development of cell therapeutics,
as well as the future of the cell therapeutics industry and the rate at which such industry may grow
and other events and factors disclosed previously and from time to time in the Company's filing with the SEC, including NeoStem's
Annual Report on Form 10-K, filed by the Company with the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A,
filed by the Company with the SEC on April 30, 2012, the Company's Quarterly Report on Form 10-Q, filed by the Company with
the SEC on May 11, 2012, and other factors identified from time to time in the Company's periodic filings with the SEC. NeoStem
does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
Item 9.01.  Financial Statements and Exhibits.
(d)  Exhibits
The following exhibits are filed with this Current Report on
Form 8-K:
Exhibit
No.
Description
99.1
Press Release of NeoStem, Inc. dated July 9, 2012
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NEOSTEM, INC.
By:
/s/ Catherine M. Vaczy
Name:
Catherine M. Vaczy, Esq.
Title:
Vice President and General Counsel
Dated:  July 9, 2012