Shares of StemCells Inc STEM were on fire Wednesday on roughly eight times their average volume. However, shares are still down 71 percent year-to-date.
The stock, which was trading under the $1 handle since October 17, moved above the level on November 10.
In a 8-K filing with the SEC, the company revealed it has entered into an asset purchase agreement with BODCO Silicon Valley to sell certain stem and progenitor cell lines and certain other tangible and intangible assets, including intellectual property and books and records relating to the assets, for $4 million in cash. The company also noted that the boards of both companies approved the transaction.
The filing revealed that the company plans to use 15 percent of the sales proceeds to settle outstanding severance awards due to 16 of its former employees. The company also said in the filing that it expects the asset sales and Microbot transactions to close by the end of November 2016.
StemCells stock had plummeted on May 31, when it announced that it would terminate the Phase II Pathway Study in spinal cord injury, reasoning that the magnitude of the improvement and the perceived trend of the effect over time did not justify continuing of the study. After range bound around the $0.50 levels till mid-August, the stock staged a decent recovery only to slip back by mid-October.
On August 16, the company announced a deal to merge with privately-held Microbot Medical.
At last check, StemCells soared 34.58 percent to $1.44.
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