Thanks to all your references here to ACTC I did look up info on them but, as you know, was dismayed over the fall in the PPS and in the huge increase in outstanding shares. You remain adamant in defence of their management and I do not doubt your sincerity but wonder if your investment perhaps limits the clarity of your vision. Please sincerely comment on the items below.
Quoted From SEC actions
• SEC vs. …… (M.D. Fla. Filed May 30, 2012) is an action against several individuals and Advanced Cell Technology, Inc.
• This complaint alleges that the defendants engaged in a scheme to sell shares of penny stock issuers in violation of the registration provisions of the federal securities laws.
• Specifically, the Commission claims that the defendants devised a strategy to fraudulently secure an order under Section 3(a)(10) of the Securities Act which provides an exemption for securities issued in a bona fide exchange offer under certain circumstances and with court approval.
• To implement the scheme over fifty lawsuits were filed against the penny stock issuers supposedly for past debts.
• The suits and debts were then settled for fractions of their claimed value in exchange for shares issued as part of the settlement.
• The judge who approved the deals was not told that there were side agreements providing that part of the proceeds from the subsequent sale of the shares would be paid to the issuers.
• The complaint alleges violations of Securities Act Section 5 and Exchange Act Sections 13(a) and 13(d). The case is in litigation.”
eoi, thanks for the research and effort you spent. I knew about this but not in the detail you described. This was mentioned by Rabin in one of his conferences, I believe it was a month back or so before the last two suits were settled. Yes, there is this SEC matter that is still not settled and the company is working very hard on it.
My view about the company though is primarily based on the prospects of the company's blastomere technology which is used in production of the RPE cells, which does not require destruction of the embryo unlike those done in the Geron's technolgy for obtaining the differentiated cells. Thus, it is tremendously less controversial than Geron's, although a lot of people do not understand this and lump ACTC with Geron w.r.t. use of hESCs. Even in Geron's case, the hESCs used are only those that belong the hESC lines approved by President Bush and which were to be thrown in trash and destroyed anyhow. Any way, this is wellknown among scientists and those who have real knowledge about it.
Coming back to ACTC, the RPE cells are used, as you know, in the on-going SMD/AMD trials which have shown very encouraging results with respect to safety and, in a couple cases, significant efficacy despite the patients tested were nearly completely blind or in very advanced state of the diseases and the testing in just Phase I. Phase II has begun now and should end before the year end, I believe. The company now is adding patients in the earlier stages of the disease. These treatments fulfil FDA's what is called the "unmet need" and that, along with absence of any significant side effect so far, is a significant achievement of the company , and that is what I am attracted to.
Yes, what you are looking at is the financial/operational side of the company which is, as you correctly argue, is disgusting. But, the technology side of the company is just fantastic and that is where I want to place my bet. The former is Rabin's responsibilty and latter is an achievement of Lanza. Thus, if you look at the Rabin side, you do not like the company; but, if you look at the Lanza side, it's an attractive company which, in my opinion, is finally going to prevail. So, I would have to be patient until the SEC/litigation stuff settles which I believe has primarily brought it the penny-stock status and which Rabin is trying hard to get over.
Thanks, really, and apologize to you if I hurt your sincere feelings.
Mruyog well said.! In fairness to you I'll now investigate this company's blastomere technology used in production of the RPE cells and not comment further on its prior financial weakness. Hopefully they will cease or at least severely limit any further increase in their outstanding shares.