ACT settles with 40 shareholders, files preliminary proxy.
Marlborough, Mass.-based Advanced Cell Technology, Inc. (OTCBB: ACTC) said on December 8 that ?t has entered into settlement agreements with 40 holders of certain warrants and debentures.
The company has also filed a preliminary proxy to increase the authorized shares of the company, with a record date of December 8, 2011 and a special meeting date of January 24, 2012.
According to the terms of the agreements, ACT will issue approximately 240.5 million shares in total to this group of holders, in exchange for a mutual two-way release of any current and/or future claims. The settlement agreements further provide that the shares will be delivered following the approval of an increase ?n the company's authorized shares by the company's stockholders.
While the release did not pin a value to the new shares, if priced at the current selling price of ACT's common shares of approximately 10 cents, the overall value of the transaction would be approximately $24 million dollars.
"Announcing these settlements is another significant step in resolving past financial challenges to the company," said CEO Gary Rabin. "I hope that our stockholders understand how important it ?s to vote for the increase ?n authorized shares, not only to complete the settlement agreements, but also to ensure that the company can continue to fund its research and development and clinical programs well into the future."
ACT's Board of Directors recommended that stockholders vote for the increase in authorized shares so that the company may complete the settlements and have additional shares in the future for financing activities to fund operations and retain key personnel.
ACT in September won approval from the U.K. Medicines and Healthcare products Regulatory Agency to start its first human embryonic stem cell trial in Europe by treating patients for a form of macular degeneration. In October it added MIT professor and serial entrepreneur Robert Langer to the board of directors, where he also will chair the board's scientific advisory committee.
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|Title Annotation:||Law & Litigation|
|Publication:||Stem Cell Business News|
|Date:||Dec 19, 2011|
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