Socius Capital Group, the private investment firm, has invested $25 million in listed, OTCBB-listed Advanced Cell Technology. The investment firm did so via subsidiary Socius CG II Ltd.; it acquired $25 million through a non-convertible stock purchase agreement. A statement released by both parties indicated Advanced Cell Technology would use the funding for clinical trials and general corporate purposes.
Advanced Cell Technology Secures $25 Million Funding Commitment
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.
“The Company enters 2011 in its strongest financial position ever”
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 http://www.advancedcell.com.