BioTime, Geron gene/cell therapy news
BioTime sent a proposal to Geron shareholders to acquire all Geron stem cell assets for a 21.4% stake in BioTime's BioTime Acquisition Corp. subsidiary, which would own the assets. BioTime would contribute to BioTime Acquisitions $40 million in BioTime common shares. Geron shareholders would also receive one BioTime warrant for each BioTime Acquisitions share held. BioTime Acquisitions would also conduct a rights offer to Geron shareholders to raise up to $39 million, under which Geron shareholders would have the opportunity to increase their stake in the subsidiary to up to 45%. Under the proposal, Geron would retain its cancer therapy business, including GRN1005 and imetelstat, as well as its cash and short-term investments. BioTime asked Geron shareholders to urge the board to work with BioTime to negotiate a definitive agreement for the stem cell assets. Earlier this month, BioTime established the subsidiary to pursue opportunities and acquire assets and businesses in the fields of stem cells and regenerative medicine. At June 30, Geron had $122.3 million in cash and a six-month operating loss of $37.4 million (see BioCentury, Oct. 8).
Geron said that it will review the proposal and consult with its financial and legal advisors. Stifel Nicolaus Weisel is acting as financial advisor and Weil, Gotshal & Manges is acting as legal counsel to Geron in connection with the divestiture of the stem cell assets. ...