Marlborough-based Advanced Cell Technology announced that it has made a $35-million deal with an investor that will fund it for two years.
Executing the first stage of the deal, Chicago-based Lincoln Park Capital Fund LLC made a purchase of $800,000 in ACT’s common stock, for 8 cents per share.
Upon approval by the federal Securities and Exchange Commission, ACT will be able to sell up to $34.2 million of its common stock to Lincoln over three years.
ACT, a life sciences company focusing on regenerative medicine, said proceeds from the deal will be used to fund its clinical activities – which include three clinical trials for macular degeneration – for development of other therapies and general corporate purposes. ACT said the deal will not affect its goal of completing a reverse split and NASDAQ listing.
“We are most pleased about this financing agreement, as it has a number of notable benefits for the company,” said Gary Rabin, chairman and CEO of ACT. “It was a priority for us to complete a new financing by year-end, as we never again want to be in a position to have to go looking for capital from a position of distress or weakness. This agreement strengthens our balance sheet allowing us to focus on advancing our clinical programs, pursuing strategic partnerships, and other long-term objectives.”
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