A Medical Device Daily

Advanced Cell Technology (ACT; Alameda, California) reported two separate financing transactions.

The company said that “substantially all” of the holders of its currently outstanding amortizing convertible debentures and common stock purchase warrants issued Sept. 15, 2005, have exercised their existing additional investment option to purchase additional debentures and warrants.

Upon closing, the additional investment option will generate about $8.5 million in new capital. The company said it expects the closing to occur on or about Sept. 7.

In addition, ACT said it has agreed to reduce the exercise price of its currently outstanding $2.53 warrants and $1.27 warrants to 95 cents a share, provided that a minimum of 85% of the holders of the $2.53 warrants exercise the warrants as repriced.

In connection with the repricing, the company will issue a replacement warrant to each warrant holder exercising the repriced warrant on the same terms and conditions as the existing warrant at a price of $1.60.

The company said it anticipates receiving funds from the exercise of the repriced warrants in the amount of about $5 million. The shares underlying the $1.27 warrants are not subject to a current registration statement.

In light of the exercise of the additional investment option and the warrant transaction, the company said it has terminated the private placement financing reported on Aug. 22, as the need for that capital has been satisfied.

ACT is a biotechnology company applying embryonic stem cell technology in the emerging field of regenerative medicine. The company operates facilities in Alameda, California, and Worcester, Massachusetts.