By Devika Patel
Knoxville, Tenn., Nov. 13 - Advanced Cell Technology, Inc. took in $1.66 million in a $2 million private placement of $2.4 million in promissory notes on Nov. 12, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced Nov. 2.
The notes, which are being sold in two tranches, will be convertible into common shares at a conversion price of $0.10.
The company will be required to redeem the notes monthly starting in May for 14.28% of the initial principal amount until the notes are paid in full.
Investors also will receive one and one third-share warrants for every two shares underlying the notes. The warrants are exercisable for five years at an exercise price equal to 110% of the closing price of the company's common stock on the trading day preceding the initial closing date of the offering. The exercise price will not be less than $0.10.
The initial closing occurred on Nov. 12. The company sold $1.66 million in notes for $1.39 million and issued 11.08 million warrants. The second closing will be within 90 days.
Advanced Cell is an Alameda, Calif., biotechnology company.
| Issuer: | Advanced Cell Technology, Inc.
|
| Issue: | Promissory notes
|
| Amount: | $2.4 million
|
| Price: | $2 million
|
| Conversion price: | $0.10
|
| Warrants: | One and one third-share warrants per two shares underlying notes
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.108
|
| Pricing date: | Nov. 2
|
| Settlement date: | Nov. 12 (for $1,662,000)
|
| Stock symbol: | OTCBB: ACTC
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| Stock price: | $0.113 at close Oct. 30
|
| Market capitalization: | $50.1 million
|
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