Advanced Cell to restate financial results
Marlborough-based Advanced Cell Technology announced Monday that it will restate financial results between 2009 and 2013 because it misapplied accounting guidance related to stock warrants issued in September 2005.
The clinical-stage biotechnology company said it will restate full results from 2009 to 2012, and every quarter between the beginning of 2011 and the fall of 2013.
The stock warrants included a feature that entitled shareholders to adjust the volume and purchase price of their shares to reflect the lowest sale price of any company shares issued between May 2005 and January 2009. The restatement will not impact the company’s previously reported cash and cash- flow figures.
This is the latest in a series of challenging development for Advanced Cell.
The company announced Dec. 23 that the U.S. Securities and Exchange Commission (SEC) had launched an investigation into then-CEO Gary Rabin’s alleged failure to report his sale of company stock on 27 occasions between February 2011 and January 2013.
A week later, Advanced Cell agreed to pay $4.1 million to settle claims by the SEC that the company sold billions of shares of unregistered penny stock.
On Jan. 22, the company announced that Rabin was departing at CEO.
Advanced Cell reported $5.7 million of losses in the third quarter of 2013, and had just $4.9 million in available cash.
(Image credit: freedigitalphotos.net)
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