Advanced Cell Technology Secures $30 Million Equity Facility from Lincoln Park Capital
July 03 2014 - 9:05AM
Business Wire
Advanced Cell Technology, Inc. (“ACT”)(OTCBB:ACTC), a leader in
the field of regenerative medicine, today announced that it has
entered into a $30 million common stock purchase agreement with
Lincoln Park Capital Fund, LLC (“LPC”).
“LPC has been an important partner over the years and we are
pleased to continue our relationship with them. This facility gives
us an additional option in funding the progress of our business,
without creating complications in our capital structure. Securing
this new line of funding enables us to make prudent decisions and
will help us optimize future financing opportunities as we develop
our plan to up-list to a national exchange and pursue long-term,
fundamental-based, institutional capital,” said Ted Myles, ACT’s
Interim President, Chief Operating Officer and Chief Financial
Officer.
Under the terms of the purchase agreement, ACT has agreed to
file a registration statement with the U.S. Securities &
Exchange Commission (“SEC”) covering the shares that may be issued
to LPC under the agreement. After the SEC has declared effective
the registration statement related to the transaction, the Company
has the right over a 36-month period to sell up to $30,000,000
worth of shares of the Company’s Common Stock to LPC, subject to
certain limitations and conditions set forth in the agreement. In
consideration for entering into the agreement, the Company issued
LPC shares of the Company’s Common Stock as a commitment fee.
Dr. Paul K. Wotton, incoming President and CEO of ACT,
commented, “This commitment from LPC is a good instrument to have
in place as we prepare to initiate our Phase 2 trials for
age-related macular degeneration and Stargardt’s macular
degeneration. Having this line in place will allow us to bridge in
the short-term, and will also play an important strategic role in
the longer-term, as we evaluate and prioritize the many exciting
programs in our pre-clinical pipeline. I look forward to joining at
this pivotal period for ACT and we are pleased to have partners
like LPC, to enable us to focus on the rigorous execution of all
elements of our business plan.”
The elements of the new arrangement with LPC include:
- ACT controls the timing and amount of
any sales of common stock to LPC at a known price;
- LPC cannot require ACT to make sales,
but is obligated to make purchases as ACT directs in accordance
with the terms of the agreement;
- There is no upper limit on the price
per share that LPC could be obligated to pay for shares of common
stock under the agreement; and
- There are no limitations on use of
proceeds, financial covenants, restrictions on future financings,
rights of first refusal, participation rights, penalties or
liquidated damages.
More information is available in ACT's Current Report on Form
8-K, filed today with the SEC.
About Advanced Cell Technology, Inc.
Advanced Cell Technology, Inc., (ACT) is a Marlborough,
Mass.-based biotechnology company focused on the development and
commercialization of human embryonic stem cell (hESC) and adult
stem cell technology. The company’s most advanced products are in
clinical trials for the treatment of dry age-related macular
degeneration, Stargardt’s macular degeneration and myopic macular
degeneration. ACT’s preclinical programs involve cell therapies for
the treatment of other ocular disorders and for diseases outside
the field of ophthalmology, including autoimmune, inflammatory and
wound healing-related disorders. The company’s intellectual
property portfolio includes pluripotent stem cell platforms – hESC
and induced pluripotent stem cell (iPSC) – and other cell therapy
research programs. For more information, visit
www.advancedcell.com.
About Lincoln Park Capital Fund, LLC (“LPC”)
LPC is a Chicago-based Investment Group and Asset Management
Firm focused on opportunistic investing in public and private
companies, real estate and high alpha money management strategies.
LPC believes that opportunistic investing and long term thinking go
hand in hand and strives to make investments that align incentives
and lead to long term mutually beneficial relationships. We base
our investment decisions on our fundamental analysis, due diligence
process and experience. We make investments with a long-term focus
knowing that economic, business, and market cycles demand that
investors be patient.
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 our report on
Form 10-K for the year ended December 31, 2013 and our report on
Form 10-Q for the three months ended March 31, 2014.
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 or other development programs will be
successful.
Investors:CEOcast, Inc.Bob Woods, 212-732-4300orPress:Russo
PartnersDavid Schull, 858-717-2310