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Geron Corporation (GERN) Message Board

  • lws2000 lws2000 Jan 13, 2013 6:59 PM Flag

    This sounds good ror Geron. Please comment

    Geron Corporation (GERN) announced that it has signed an Asset Contribution Agreement with BioTime, Inc. (BTX) and BioTime's recently formed subsidiary, BioTime Acquisition Corporation (BAC).

    Per the terms of the agreement, Geron’s stem cell assets will be divested to BAC on the closing of the deal. The deal is scheduled to close by September 30, 2013.

    Once the deal is closed, Geron will provide BAC with the intellectual property and other assets related to its discontinued human embryonic stem cell programs. BioTime will provide BAC with cash ($5 million), shares (8.9 million), warrants to purchase 8 million shares at a price of $5.00 per share, rights to use certain human embryonic stem cell lines, and minority stakes in two subsidiaries of BioTime.

    Meanwhile, Geron stockholders would have a 21% stake in BAC. Geron will also be entitled to receive royalties on the sale of products covered by the patents acquired by BAC from Geron.

    Apart from Geron, BioTime would have a 72% stake in BAC and the remaining 7% would be owned by a private investor (for an investment of $5 million). BioTime will also have warrants which would allow the company to increase its stake in BAC by 2%. However, this would lead to a 2% dilution in Geron’s stake.

    Sentiment: Strong Buy

2.42-0.11(-4.35%)3:59 PMEDT

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