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BioTime, Inc.
BTX and its recently formed subsidiary BioTime
Acquisition Corporation (BAC) jointly announced today that they have entered
into a definitive Asset Contribution Agreement with Geron Corporation
GERN to acquire the intellectual property, including patents and patent
applications, and other assets related to Geron's human embryonic stem (hES)
cell programs consistent with the financial terms outlined in the letter of
intent announced on November 15, 2012.
Under the definitive agreement, Geron will contribute to BAC intellectual
property, certain cell lines and other assets, including the Phase 1 clinical
trial of hES cell-derived oligodendrocytes in patients with acute spinal cord
injury, and Geron's autologous cellular immunotherapy program. BioTime will
contribute to BAC $5 million in cash, 8,902,077 BioTime common shares to be
held by BAC, five-year warrants to purchase 8,000,000 common shares of BioTime
at a price of $5.00 per share (“BioTime Warrants”), rights to use certain
clinical grade hES cell lines, a sublicense to use certain patents for stem
cell differentiation technology, and minority stakes in two of BioTime's
subsidiaries, OrthoCyte Corporation and Cell Cure Neurosciences Ltd. BAC will
also pay to Geron royalties on the sale of products that are commercialized,
if any, in reliance upon Geron patents contributed or licensed to BAC. A
private investor has also agreed to provide an equity investment of $5 million
in BAC and a $5 million equity investment in BioTime in conjunction with the
transaction.
Closing of the transactions under the definitive agreement is subject to
certain negotiated closing conditions, including the registration of the BAC
Series A common stock, the BioTime common shares contributed to BAC, and the
BioTime Warrants under the Securities Act of 1933, as amended, and certain
approvals by BioTime shareholders. The transaction is expected to close no
later than September 30, 2013.
Upon closing of the transaction, Geron will receive BAC Series A common stock,
and BioTime and the private investor will receive BAC Series B common stock in
the transaction. The Series A and Series B common stock will be identical,
except that BAC will be entitled to make certain distributions or pay
dividends on its Series A common stock without making a distribution or paying
a dividend on its Series B common stock.
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