Settlement says nothing of the kind...go back to sleep leach. Leave the board.
Jan 17, 2013 16:30:00 (ET)
MARLBOROUGH, Mass., Jan 17, 2013 (BUSINESS WIRE) -- Advanced Cell Technology, Inc. ("ACT"; OTCBB: ACTC or the "Company"), a leader in the field of regenerative medicine, today announced that it has reached a settlement agreement with CAMOFI and CAMZHN Master LDC (collectively, the "Investors") resolving a lawsuit filed against ACT in the Supreme Court of New York relating to the conversion price of certain notes and the exercise price of certain warrants. The Investors claimed that the conversion price for the debentures and warrants they held should have been adjusted as a result of a transaction entered into between the Company's previous management and an investor in 2010. At the time, the Investors had not converted most of their debentures or warrants. The Investors were the final parties to settle the litigation, which had previously been disclosed in multiple ACT 8-K filings.
Under the terms of the settlement, ACT will pay $12.5 million to the Investors, plus legal expenses, comprised of $2 million in cash, $4.5 million in restricted common stock and $6 million through the issuance of an 8% amortizing redeemable convertible debenture that matures June, 2015. The Company and Investors have agreed to enter into a registration rights agreement, which will require the Company to register the shares of common stock into which the debentures are convertible with the Securities and Exchange Commission.
"This settlement ends the cost and uncertainty associated with this litigation and resolves all of the litigation relating to the debentures, which have represented an ongoing cost and distraction for both management and our shareholders," said Gary Rabin, chairman and CEO of ACT. "The resolution of this litigation represents a significant step in resolving past potential liabilities and in enhancing the Company's ability to attract a broader shareholder base."
Further details are available in the Company's Form 8-K filed with the Securities and Exchange Commission.
LOL Stupid #$%$ its in the last sentence of the first paragraph of bullet point 4 in the 8-k filed on 1-18-13
"To secure its obligations under the Debentures, the Company will grant a security interest in substantially all of the Company's assets, including its intellectual property, to the Settling Parties. The Debentures contain certain covenants customary for debt instruments of its kind."
It is right there. IT IS A FACT the intellectual property is part of the settlement #$%$ It was intentionally left out of the PR summary to keep mindless suckers from you realize you just got screwed.
There will be a lot of people make a ton of money off of this science but the shareholders of ACTC wont be in that group raking in the money.
ACTC just gave away the keys to the store. PLEASE explain how giving away intellectual property in a lawsuit is a good thing.