logo
  Join        Login             Stock Quote

Geron (GERN) To Sell Stem Cell Assets To Biotime (BTX) Subsidiary

 January 07, 2013 08:13 AM
 


(By Balachander) Geron Corp. (NASDAQ: GERN) has agreed to sell its stem cell assets to a recently formed subsidiary of BioTime Inc. (NYSEAMEX: BTX).

Under the terms of the agreement, Geron will divest its intellectual property and other assets related to its discontinued human embryonic stem cell programs to BioTime Acquisition Corp. (BAC).

Geron will receive roughly 6.5 million shares of Series A Common Stock of BAC. BioTime will contribute to BAC $5 million in cash, around 8.9 million BioTime shares to be held by BAC, five-year warrants to purchase 8 million BioTime shares at an exercise price of $5.00 per share, rights to use certain human embryonic stem cell lines, and minority stakes in two of BioTime`s subsidiaries.

[Related -Geron Corporation (GERN): Understanding Your Options]

BioTime will receive roughly 21.8 million shares of Series B common stock of BAC and three-year warrants to purchase 3.15 million shares of Series B common stock of BAC at an exercise price of $5.00 per share.

In addition, BAC will pay royalties to Geron on the sale of products that are commercialized, if any, in reliance upon Geron patents acquired by BAC. 

Further, a private investor has agreed to make an equity investment of $5 million in BAC and a $5 million equity investment in BioTime.

Geron's hESC patent portfolio includes over 400 patents and patent applications that will be transferred or sublicensed to BAC. Geron obtained the first approval from the Food and Drug Administration for human clinical trials of a product manufactured from hES cells.

[Related -Futures Slip Ahead Of Earnings Season; Illumina (ILMN) Tumbles]

The deal is expected to occur no later than September 30, 2013.

GERN shares rose 3.16 percent in premarket trading to $1.58 on Monday.

BTX shares closed at $3.20 on Friday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageADP: Private-Sector Payrolls Rise 213k In September

Private-sector employment continued to rise at a moderate pace in September, according to this morning’s read on...

article imageSuspicions Over ADP Employment Make-up

he private payroll processor noted that the sixth continuous payroll gain above 200,000 was a “positive read on...

article imageLessons From the Golden Bear

How attractive is gold when it comes to investing over the long read on...

article imagePondering The Slide In US Inflation Expectations

The Treasury market’s inflation forecast via 10-year Notes continues to fall and the US stock market has read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.