Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

January 18, 2013

ACT Announces Lawsuit Settlement

Advanced Cell Technology (ACT) of Marlborough said it has reached a settlement agreement in a lawsuit it faced over the conversion of debt notes and the exercise price of certain warrants.

The biotech firm said it will pay $12.5 million to two investors – CAMOFI and CAMZHN Master LDC – who claimed that the conversion price for unsecured debt, or debentures, and warrants they held should have been adjusted as a result of a 2010 transaction between ACT’s previous management and an investor.

ACT said it will also pay legal expenses of about $2 million, $4.5 million in restricted common stock and $6 million through the issuance of an 8-percent amortizing redeemable convertible debenture that matures in June 2015.

“The resolution of this litigation represents a significant step in resolving past potential liabilities and in enhancing the company’s ability to attract a broader shareholder base,” said Gary Rabin, chairman and CEO of ACT.

Sign up for Enews

WBJ Web Partners

Related Content


Order a PDF