BioTime signs letter to acquire Geron stem cell assets

BioTime Inc. (NYSE-M:BTX) signed a non-binding letter of intent with Geron Corp. (NASDAQ:GERN) to acquire Geron's discontinued stem cell programs. Under the terms, Geron shareholders would have a 21.4% stake in BioTime's BioTime Acquisition Corp. subsidiary, which would own the assets. Geron shareholders would also receive warrants to purchase 8 million BioTime shares and would be eligible for royalties. The letter includes a commitment from an undisclosed investor to contribute $10 million to fund the acquisition comprising $5 million in cash and $5 million through the purchase of BioTime shares. The investor will also receive 1 million three-year warrants to purchase BioTime shares at $5.

Last month, BioTime sent a proposal to Geron shareholders to acquire all of Geron's stem cell assets. BioTime established the BioTime Acquisition Corp. subsidiary to pursue opportunities and acquire assets and businesses in the fields of stem cells and regenerative medicine. In January, Geron hired Stifel Nicolaus to "find excellent homes" for its stem cell assets and products. ...