For all the good science, this is gang that can't shoot straight
The Bottom Line: Under the terms of the settlement, ACT will pay $12.5 M to the investors, plus legal expenses, comprised of $2 M in cash, $4.5 M in restricted common stock and $6 M through the issuance of an 8% amortizing redeemable convertible debenture that matures 6/15. The Company and Investors have agreed to enter into a registration rights agreement, which will require the Company to register the shares of common stock into which the debentures are convertible with the SEC. Will this… resolution of litigation attract a broader shareholder base … I doubt it!!
Yes, it will attract a broader base of shareholders and more importantly it will now attract big pharma who before this would not want to take on a company entangled in so much litigation. The stock closed at .0835, up from 2 fridays ago as well as up from last friday too. I think this will ease the doubts of those who may have been thinking of investing but were not sure. MY OPINION.