Tuesday, October 7, 2008

Advanced Cell Tech sells $500K in bonds

By Mass High Tech Staff

Worcester-based Advanced Cell Technology Inc. will be selling $500,000 in convertible bonds in the next three months, through an agreement with Irish investment firm Transition Holdings Ltd., ACT officials report.

The Worcester cell tech developer said the money it takes in from the sale of the one-year, 7 percent convertible debentures will be used for its working capital, moving its advanced clinical program forward and general corporate use.

ACT (OTC: ACTC) said in September that it is focused on finding a partner its proprietary preclinical programs in treating retinal disease with embryonic stem cell therapy, and the manufacturing of red blood cells for the treatment of blood and cardiovascular indications based on embryonic stem cell therapy. In addition, the company is looking for funding for a Phase 2 trial for its autologous adult stem cell therapy for the treatment of heart disease, which it obtained from its $5 million purchase of Charlestown-based Mytogen Inc. in September 2007. The program, called Myoblast, has successfully completed four Phase 1 clinical trials and has clearance from the U.S. Food and Drug Administration to begin the Phase 2 trials.

To cut operating expenses, the company announced its plans to close a Charlestown research facility and Alameda, Calif., headquarters; the plan relocates the ACT headquarters to its founding city in Worcester.