From 8-k 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.
You just lost the keys to the candy store. The selling parties now own the rights to ACTC intellectual property. This is the most valuable part of the settlement.
You people are screwed but are to full of hope and desperation to believe the facts. There will be a ton of money but not by the ACTC shareholders. This makes it look like the investors are being sucked to pay the bills for someone else to reap the benefits of the science. How is this a good thing?
Sentiment: Strong Sell
Sounds like you're running from your own statement, prd. For better or worse, the company can pay the note with shares. In a worse case that just means more dilution. little risk of losing the IP.
your interpretation is not correct...a security interest means that if the terms of the settlement are not met, the intellectual property rights may then be used to insure that the debt obligations are met...
"A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt. It gives the beneficiary of the security interest certain preferential rights in the disposition of secured assets. Such rights vary according to the type of security interest, but in most cases, a holder of the security interest is entitled to seize, and usually sell, the property to discharge the debt that the security interest secures."
"A secured creditor takes a security interest to enforce its rights against collateral in case the debtor defaults on the obligation. If the debtor goes bankrupt, a secured creditor takes precedence over unsecured creditor in the distribution."
if i pay a security when i rent an apartment, that money is to be used in the case that i fail to pay the rent for the length of the rental contract...if i pay as agreed, the security is returned.
actc has not sold its INTELLECTUAL PROPERTY rights...
Sentiment: Strong Buy
Nobody ever defaults? One of three likely events will will take place.
1) ACTC will get a JV shoot through the roof do a smaller r/s uplist and go to $30.00 bucks per share all within the next few months according to 90% of the posts on this site. Hope it does.
2) Nothing much will happen and this stock will plod along just as it has in the past for the many years to come.
3) Reverse split with no uplist. You will notice the first plan of R/S and move to the big board was called off then replaced with reverse split without mention of uplist. Thats a very small but critical detail. ACTC will then dilute to finance the next phase of the clinical trial. At that point default on the lawsuit settlement close the doors after sucking all the money they can out of the stock and reopen as ACTC II on the NASDAQ with a realistic float no debt and ownership of what gains and intellectual property and new share holders. The original ACTC will be a carcass being picked over by the shareholders you got screwed.
With a float this out of control there are few option to manage that and continue to operate the way ACTC has. You people have a 1 in 3 chance to hitting it big. Not bad odds keep buying, keep posting like the boneheads from 2010 predicting $3 to $30 dollars a share by 2012. That didn't happen even though they believed it with all their heart. The heart is the wrong organ to invest with
Sentiment: Strong Sell
Exactly no different than a house or car. The lien holder takes the car or home then resells it for a profit. In this case the lien holders take the remaining assets AND intellectual properties and continue to move forward under a new reincarnation of the old company. The reformed company will have all the positive benefits of ACTC but not of the ugly baggage. It may or may not happen but I bet it is one possible business solution and a worse case outcome for current investors. Share price below ten cents and over two billion shares and only half way through P1. You have limited options if everything does not go as planned to perfection.
Can you honestly say that never happens?
Never mind you people are much happier with hope rather than cash. You can post a million time its going to DA MOON. It doesnt always work out that way. Hope it turns out to be a successful treatment whoever owns it in 5 years.
Sentiment: Strong Sell