Oceanside-headquartered International Stem Cell Corp. announced July 22 that it has made preliminary financial arrangements to create a new European subsidiary, to be called ISCO Europe.

A statement said the biotech company has entered into a nonbinding memorandum of understanding with ARG Vermogensverwaltung AG, a German investment fund, to create the subsidiary, which would be funded with up to $10 million of capital derived from ARG and other independent sources in Europe.

Shares of ISCO Europe are expected to trade on the Deutsche Bourse independently of the companys shares in the United States. Shares of the European subsidiary will not be convertible into ISCO shares on any U.S. exchange, the statement said.

Following the financing of ISCO Europe, ISCO is expected to retain ownership of 80 percent or more of the new subsidiary.

The statement followed International Stem Cells July 20 announcement that it will set up an affiliate company in India to develop and manufacture stem cell-derived pharmaceutical products.

Financial terms were not disclosed for that arrangement, under which the Oceanside firm and Insight Bioventures India Private Ltd. would produce products including treatments for corneal vision impairment.

- Lou Hirsh