Accordingly, on January 23, 2013, we issued an aggregate of 80,357,143 shares to CAMOFI and CAMHZN as required by the Settlement Agreement
Well, according to my research, this should be the last settlement. At this stage 2013, it should start on an slow upward trend, and with any good news, it should be no looking back and extremely positive. Too many years at this level with so much in the new field of Stem Cell technology. Long w/over $65,000 invested.
Sentiment: Strong Buy
When was the last time you saw a hedgy run a successful public company, let alone a successful junior biotech company. Just look at the settlement and understand who now controls the company. Kinda like handing the keys of the hen house to the fox.. please remind the dog to guard the bone...bwahahahahahaha.
The settlement is new news, the amount of shares that ACTC had to issue is not. The numbers are consistent with prior settlements as to shares. One big plus is that all the creditor/shareholder litigation is finally settled. Only the SEC (fine to be more appropriate) matter is pending with a potential cash outlay of up to $3.2 million. That will clear the slate and once the R/S and Phase II trials end, we are on our launch pad.
So now there's 2.3 million shares O/S vs 2.2. Sounds fairly minor in the scheme of things. I'm sure there's a lot more reasons than this as to why the stock price is sitting below .08. What I'd like to know is how they got into this kind of legal trouble in the first place. What were their financial people or whatever legal entity they used to broker the deal doing when the deal was being processed? Apparently not much. Still hoping the share price jumps to at least .15 sometime during this quarter but if it doesn't I doubt anyone will be surprised.
It would be nice if OS were 2.3M as you indicated. However, the actual OS is 2.19 BILLION, and as of Jan. 15, 2013, a short interest of 597, 953 (not consequential, imo). No one knows what the current float is or authorized shares are in the light of the "toxic debentures" settlement. The pps has a direct propotionality with its valuation vs its share stats with miniscule to none existent revenues...fundamentals not very palatable at this time, imo.
Finance, is always the Achilles heel of Junior Biotechs and startups, which often lead their inexperienced management teams to TOXIC financing deals at the expense of shareholder value. I am not sure where the wheels came off ACTC, before the death of Bill or when Gary took the reigns. Remember also that GR was a hedgy, lol. This may be a classic case of where the fox is guarding the hen house, and the eggs are automatically allocated to the fox, with shareholders looking on, powerless....bwahahahahahaha.
That said, your optimism for a "share price jump to at least $0.15" is shared by many, especially the clapping seal, "Keep-investing", but I beg to differ. Facts don't lie...a price jump is waaay in the distant future, barring spectacular trial results, buybacks, or partnership with a Big pharma. So don't be surprised with more of nthe same, if not worse. The settlement has effectively couched the company, imo.
You are absolutely right...one word DILUTION.
If ya thinks it is bad now wait till March 31, 2013, when quarterly payments, in the amount of $473,278 under the Debentures, on the last day of each calendar quarter, are due. The recent settlement is a chokehold on the company, imo.
It would be a disaster if they default. No revenue makes this a major concern in the face of trial costs and administrative expenses. They need Big Pharma partner/s, imo
Dojo, the stock has been below $1 per share for almost 7 years, last time it closed above $1, was May, 2006. Dilution isn't killing the share price, its that they have no products, thus no revenue, therefore no profits. If they were able to market AMD in the USA and Europe($25B - $30B market), that would be the catalyst to shoot them easily over the $1 per share mark once more.
Has "no products", so "no value"? Why would anyone invest in any start-up biotech, then? Seriously? And YOU keep telling me to "go milk the cows" because I'M dumb?
"Better to remain silent and be thought a fool than to open your mouth and remove all doubt"!!