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Marlborough stem cell-based therapeutics firm Advanced Cell Technology Inc. has agreed to settle with 40 separate holders of certain warrants and debentures by issuing approximately 240.5 million shares to them, the company said in a release.
To do so, ACT is hoping to increase the company’s total authorized shares, which requires approval from the current shareholders of the publicly traded company. ACT plans a special meeting of shareholders on Jan. 24, 2012 to vote on the increase. While the release did not pin a value to the new shares, if priced at the current selling price of ACT’s common shares of approximately 10 cents, the overall value of the transaction would be approximately $24 million dollars.
In a filing with the U.S. Securities and Exchange Commission, ACT (OTCBB: ACTC) said that approximately 83 million shares of the new 240 million would go to a pair of large settling holders — Smithfield Fiduciary LLC, which would get 31.6 million shares, and T.R. Winston & Co. LLC, which would be issued 51.5 million shares of common stock.
ACT also said in the filing that, while it reached agreement with the 40, an additional four holders could not be reached and four others are “in active litigation” with the company.
In the release, ACT states that both the board of directors of the company, and chairman and CEO Gary Rabin encourage shareholders to vote for the increase in company’s shares at the January special meeting. In August, Rabin was named permanent CEO, about eight months after the unexpected death of ACT chairman and CEO William M. Caldwell IV. Rabin had been serving as interim CEO since December 2010 and has served as a director on the ACT board since 2007.
ACT in September won approval from the U.K. Medicines and Healthcare products Regulatory Agency to start its first human embryonic stem cell trial in Europe by treating patients for a form of macular degeneration. In October it added MIT professor and serial entrepreneur Robert Langer to the board of directors, where he also will chair the board’s scientific advisory committee.
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