Advanced Cell Technology Announces Settlement of Litigation
Agreement Resolves All Litigation Associated with Previously Issued Convertible
Debentures
MARLBOROUGH, Mass., Jan 17, 2013 (BUSINESS WIRE) -- Advanced Cell Technology,
Inc. ("ACT"; OTCBB: ACTC or the "Company"), a leader in the field of regenerative
medicine, today announced that it has reached a settlement agreement with CAMOFI
and CAMZHN Master LDC (collectively, the "Investors") resolving a lawsuit filed
against ACT in the Supreme Court of New York relating to the conversion price of
certain notes and the exercise price of certain warrants. The Investors claimed
that the conversion price for the debentures and warrants they held should have
been adjusted as a result of a transaction entered into between the Company's
previous management and an investor in 2010. At the time, the Investors had not
converted most of their debentures or warrants. The Investors were the final
parties to settle the litigation, which had previously been disclosed in multiple
ACT 8-K filings.
Under the terms of the settlement, ACT will pay $12.5 million to the Investors,
plus legal expenses, comprised of $2 million in cash, $4.5 million in restricted
common stock and $6 million through the issuance of an 8% amortizing redeemable
convertible debenture that matures June, 2015. The Company and Investors have
agreed to enter into a registration rights agreement, which will require the
Company to register the shares of common stock into which the debentures are
convertible with the Securities and Exchange Commission.
"This settlement ends the cost and uncertainty associated with this litigation
and resolves all of the litigation relating to the debentures, which have
represented an ongoing cost and distraction for both management and our
shareholders," said Gary Rabin, chairman and CEO of ACT. "The resolution of this
litigation represents a significant step in resolving past potential liabilities
and in enhancing the Company's ability to attract a broader shareholder base."
Further details are available in the Company's Form 8-K filed 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, 2011. 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. There can be no assurance that the Company's clinical trials will
be successful.
cts.businesswire.com
SOURCE: Advanced Cell Technology, Inc.
Investors:
CEOcast, Inc.
James Young, 212-732-4300
or
Press:
ACT Corporate Communications
Bill Douglass, 646-450-3615
or:
Russo Partners
Martina Schwarzkopf, Ph.D., 212-845-4292 |
