MultiCell Technologies Inc., which ended February with about $1.1 million in cash and cash equivalents, entered an agreement for Fusion Capital Fund II LLC to buy up to $25 million of the company's common stock over time.

The deal calls for Fusion, of Chicago, to buy shares over a 25-month period, once a registration statement has been declared effective. San Diego-based MultiCell has the right to sell to Fusion Capital up to $1 million of its common stock per month at a price based on market value on the date of sale. MultiCell can control the timing of the sale and the amount, which the company can increase or decrease under certain conditions.

MultiCell also can terminate the agreement at no penalty, and if the company's stock falls below 10 cents per share, Fusion does not have "the right or obligation" to buy shares, MultiCell said in an SEC filing.

For signing the deal, MultiCell issued to Fusion Capital about 1.6 million shares of common stock and warrants to buy another about 1.6 million. MultiCell's stock (OTC BB:MCET) closed at 42 cents Thursday, up 17 cents, or 18.3 percent.

The funds are expected to be used for general corporate purposes, and also to move MCT-125 into a pivotal Phase IIb/III trial for fatigue in multiple sclerosis.

MultiCell is the new owner of MCT-125, having in-licensed it from Amarin Corp., of London, which referred to the drug as LAX-202. The deal, made public in late 2005, carried a potential value of $275 million - up-front payment, milestones and estimated royalties for the drug's patent life - but specific terms were not disclosed.

The drug performed well in a 138-patient Phase IIb trial conducted in the UK by Amarin. It significantly reduced the levels of fatigue in MS patients in the study and was effective within four weeks of the first daily oral dosing. It also showed efficacy in MS patients who were moderately as well as severely affected.

MultiCell, which has a presence in Lincoln, R.I., also has a drug for Type I diabetes. Other candidates in its pipeline include antiviral treatments for influenza threats, as well as treatments for other infectious diseases.

The company, which produces cell lines for biotech firms, uses its cell-based technology for drug screening, too.