Advanced Cell Technology Secures $25 Million Funding Commitment
Company Now Virtually Debt-Free, and In Best Financial Position in its 16-Year
History
MARLBOROUGH, Mass., Dec 31, 2010 (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
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.
SOURCE: Advanced Cell Technology, Inc.
Investors:
CEOcast, Inc.
Dan Schustack, 212-732-4300
or
Press:
Gotham Communications, LLC
Bill Douglass, 646-450-3615 |
