BioTime Reports Pro Forma Gain on Deconsolidation of OncoCyte Subsidiary
February 21 2017 - 6:45AM
Business Wire
BioTime, Inc. (NYSE MKT:BTX), a clinical-stage
biotechnology company developing and commercializing products
addressing degenerative diseases, today announced the
deconsolidation of OncoCyte Inc.’s financial statements from
BioTime’s consolidated financial statements effective February 17,
2017. As a result of the deconsolidation, BioTime will report a pro
forma, non-cash gain of approximately $56 million. The actual
amount of the gain will be determined and recorded during the
quarter ending March 31, 2017.
The deconsolidation occurred due to the exercise of 625,000
warrants by certain OncoCyte warrant holders on February 17, 2017.
As a result of the warrant exercises, OncoCyte’s shares outstanding
increased, so that BioTime no longer owns a majority of OncoCyte’s
shares. BioTime owns 14,674,244 OncoCyte common shares, which
currently represent approximately 49.9% of OncoCyte’s common stock
outstanding. The OncoCyte shares that BioTime holds had a market
value of approximately $71 million at the close of trading on
February 17, 2017.
“We continue to simplify BioTime, both in terms of corporate
structure and investor transparency,” said Russell Skibsted, Chief
Financial Officer. “Following the deconsolidation, BioTime’s future
financial statements will more clearly reflect our operations and
cash utilization as we no longer will report OncoCyte’s cash burn
as part of BioTime’s results. We will now report the value of our
remaining ownership position in OncoCyte as a single line item on
our balance sheet at the end of each quarter based on the closing
price of OncoCyte common stock as quoted on the NYSE MKT (under
ticker “OCX”). This accounting treatment is the same as for our
ownership position in Asterias Biotherapeutics, which was
deconsolidated in May 2016. The successful development of both
Asterias and OncoCyte into independent public companies with strong
product pipelines addressing large medical market opportunities
illustrates the potential value of the technology platforms we are
developing within BioTime. We are actively exploring additional
approaches to further execute our corporate simplification strategy
while building additional shareholder value.”
The impact, including the actual gain, of this deconsolidation
will be recognized in BioTime’s quarterly report on Form 10-Q to be
filed with the Securities and Exchange Commission for the quarter
ending March 31, 2017. BioTime filed the pro forma effects of this
deconsolidation to its consolidated financial statements today in a
separate Form 8-K.
About BioTime
BioTime, Inc. is a clinical-stage biotechnology company focused
on developing and commercializing novel therapies developed from
what the company believes to be the world’s premier collection of
pluripotent cell assets. The foundation of BioTime’s core
therapeutic technology platform is pluripotent cells that are
capable of becoming any of the cell types in the human body.
Pluripotent cells have potential application in many areas of
medicine with large unmet patient needs, including various
age-related degenerative diseases and degenerative conditions for
which there presently are no cures. Unlike pharmaceuticals that
require a molecular target, therapeutic strategies based on the use
of pluripotent cells are generally aimed at regenerating or
replacing affected cells and tissues, and therefore may have
broader applicability than pharmaceutical products.
In addition to the development of therapeutics, BioTime’s
research and other activities have resulted, over time, in the
creation of other subsidiaries that address other non-therapeutic
market opportunities such as cancer diagnostics, drug development
and cell research products, and mobile health software
applications.
BioTime common stock is traded on the NYSE MKT and TASE under
the symbol BTX. For more information, please visit
www.biotimeinc.com or connect with the company on Twitter,
LinkedIn, Facebook, YouTube, and Google+.
Forward-Looking Statements
Certain statements contained in this release are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements pertaining to
future financial and/or operating results, future growth in
research, technology, clinical development, and potential
opportunities for BioTime, Inc. and its subsidiaries, along with
other statements about the future expectations, beliefs, goals,
plans, or prospects expressed by management constitute
forward-looking statements. Any statements that are not historical
fact (including, but not limited to statements that contain words
such as “will,” “believes,” “plans,” “anticipates,” “expects,”
“estimates”) should also be considered to be forward-looking
statements. Forward-looking statements involve risks and
uncertainties, including, without limitation, risks inherent in the
development and/or commercialization of potential products,
uncertainty in the results of clinical trials or regulatory
approvals, need and ability to obtain future capital, and
maintenance of intellectual property rights. Actual results may
differ materially from the results anticipated in these
forward-looking statements and as such should be evaluated together
with the many uncertainties that affect the business of BioTime,
Inc. and its subsidiaries, particularly those mentioned in the
cautionary statements found in more detail in the “Risk Factors”
section of its Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q filed with the SEC (copies of which may be obtained at
www.sec.gov). Subsequent events and developments may cause these
forward-looking statements to change. BioTime specifically
disclaims any obligation or intention to update or revise these
forward-looking statements as a result of changed events or
circumstances that occur after the date of this release, except as
required by applicable law.
To receive ongoing BioTime corporate communications, please
click on the following link to join our email alert list:
http://news.biotimeinc.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170221005540/en/
Investor Contact:EVC Group, Inc.Matt Haines,
917-733-9297mhaines@evcgroup.comorMedia Contact:Gotham
Communications, LLCBill Douglass,
646-504-0890bill@gothamcomm.com
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