Company Now Virtually Debt-Free, and In Best Financial Position in its 16-Year History
MARLBOROUGH, Mass.--(BUSINESS WIRE)-- Advanced Cell Technology, Inc. (“ACT”; OTCBB: ACTC), a leader in the field of regenerative medicine, announced today that it has entered into a $25 million non-convertible stock purchase agreement with Socius CG II, Ltd. , a subsidiary of Socius Capital Group (“Socius”). Socius, based in New York and Los Angeles, has an impressive record of making investments in emerging life sciences companies. Under the agreement, ACT may sell up to 2,500 shares of non-convertible Series C Preferred Stock to Socius over a two-year period. On closing, Socius purchased 400 shares of Series C Preferred for an aggregate purchase price of $4 million. Proceeds will be used for clinical activities, including the Phase I/II trial for Stargardt’s Disease, a potential clinical trial for Dry Age-Related Macular Degeneration and general corporate purposes.
ACT expects to end the year with approximately $15 million in cash and equivalents, and less than $1 million of debt. The Company recently strengthened its balance sheet by selling 750 shares of non-convertible Series B Preferred Stock to Optimus Life Sciences Capital Partners, LLC under a previously announced $10 million Preferred Stock transaction. ACT also eliminated more than $10 million of indebtedness through conversions and settled more than $10 million of other liabilities.
“The Company enters 2011 in its strongest financial position ever,” said Gary Rabin, ACT’s Interim Chairman and CEO. “Through a combination of the cash on hand and ability to sell Socius additional Preferred Stock, we believe we have the financial resources to take our lead program in Stargardt’s Disease, a form of juvenile macular degeneration, well into clinical development and to move our program for treating Dry Age-Related Macular Degeneration through the clinic if we receive FDA clearance. Less than one year ago, the Company was significantly in debt and lacked the financial resources to take even one program through the clinic. Today, we are essentially debt-free and have the financial ability to move both of our promising programs through the clinic. We believe 2011 will be a year filled with exciting developments as we begin to get data from these programs.”
The Company intends to file a Registration Statement covering the resale of the common stock issuable upon the exercise of the warrants and Additional Investment Right in connection with the offering. Additional details regarding the financing are included in a Current Report on Form 8-K filed on December 30, 2010 by the Company with the Securities and Exchange Commission.
About Advanced Cell Technology, Inc.
Advanced Cell Technology, Inc. is a biotechnology company applying cellular technology in the field of regenerative medicine. For more information, visit http://www.advancedcell.com.
Forward-Looking Statements
Statements in this news release regarding future financial and operating results, future growth in research and development programs, potential applications of our technology, opportunities for the company and any other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “will,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: limited operating history, need for future capital, risks inherent in the development and commercialization of potential products, protection of our intellectual property, and economic conditions generally. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in the company’s periodic reports, including the report on Form 10-K for the year ended December 31, 2009. Forward-looking statements are based on the beliefs, opinions, and expectations of the company’s management at the time they are made, and the company does not assume any obligation to update its forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change. Forward-looking statements are based on the beliefs, opinions, and expectations of the company’s management at the time they are made, and the company does not assume any obligation to update its forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change.
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