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Henry McCusker
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Analyst, Journalist and Publisher ... Henry enters his tenth (10) year at Scimitar Equity -Regenerative Medicine Investors which aggregates, curates and creates bottom-line content weeding of regenerative medicine and cell therapy news to provide a customized, vetted selection of relevant and... More
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  • Advanced Cell Technology (OTC BB: ACTC) Settles Of Investor Litigation With Payout Plan 1 comment
    Jan 17, 2013 5:26 PM

    Agreement resolves all Litigation associated with previously issued Convertible Debentures

    ACTC has reached a settlement agreement with CAMOFI and CAMZHN Master LDC (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 ACTC'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.

    The Bottom Line: Under the terms of the settlement, ACT will pay $12.5 M to the investors, plus legal expenses, comprised of $2 M in cash, $4.5 M in restricted common stock and $6 M through the issuance of an 8% amortizing redeemable convertible debenture that matures 6/15. 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 SEC. Will this… resolution of litigation attract a broader shareholder base … I doubt it!!

    ACTC closed down at $0.0835, -2.68% or -$0.0023.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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  • Noreika
    , contributor
    Comments (497) | Send Message
    Henry, you're bearish on this ACTC news?
    I'd like to see an article on ACTC for one of your biotech articles.
    17 Jan 2013, 07:59 PM Reply Like
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