OT Geron Completes Divestiture of Stem Cell Assets
(Thomson Reuters ONE via COMTEX) -- Menlo Park, CA, October 1, 2013 - Geron Corporation GERN +2.11% today announced the closing of the transaction to divest the company's stem cell assets. On January 4, 2013, Geron entered into an Asset Contribution Agreement (the "Agreement") with BioTime, Inc. BTX -0.29% and Asterias Biotherapeutics, Inc. (formerly known as BioTime Acquisition Corporation). The closing of the transaction was subject to certain approvals by BioTime's shareholders, the effectiveness of certain registration statements filed by BioTime and Asterias with the Securities and Exchange Commission (the "SEC") with respect to the securities as contemplated by the Agreement, and other negotiated closing conditions. The closing of the transaction occurred on October 1, 2013.
Under the terms of the Agreement, upon closing of the transaction, Geron contributed to Asterias intellectual property and tangible assets related to its discontinued human embryonic stem cell programs, including cell lines and a Phase I clinical trial in patients with acute spinal cord injury; intellectual property related to its autologous cellular immunotherapy program, including a Phase I/II clinical trial of autologous immunotherapy in patients with acute myelogenous leukemia; and non-therapeutic applications of pluripotent stem cells, such as cellular assay products for use in drug development and toxicity screening. As consideration for Geron's contributions, Geron received approximately 6.5 million shares of Asterias Series A common stock. Asterias will also pay royalties to Geron on the sale of products that are commercialized, if any, in reliance upon Geron patents acquired by Asterias. BioTime contributed to Asterias approximately 8.9 million shares of BioTime common stock to be held by Asterias, five-year warrants to purchase eight million additional shares of BioTime common stock at an exercise price of $5.00 per share (the "BioTime Warrants"), -Goog the rest.