On January 2, 2020 Lineage Cell Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs, reported the pricing of the sale of 2,383,090 shares of common stock of OncoCyte Corporation at a price to buyers of $2.156 per share, representing the average closing price of OncoCyte common stock over the five trading days prior to the execution of the agreement (Press release, Lineage Cell Therapeutics, JAN 2, 2020, View Source [SID1234552660]). Net proceeds from the sale were approximately $5 million. The sale is expected to close by January 9, 2020, subject to certain closing conditions. Following the completion of the sale, Lineage will own approximately 6 million shares, which represents less than 10% of OncoCyte’s outstanding common stock. Based on the closing price of OncoCyte’s common stock on January 2, 2020, the value of Lineage’s remaining OncoCyte shares following the closing is approximately $13.5 million. Lineage has agreed not to sell additional shares of OncoCyte common stock until March 17, 2020 or unless the OncoCyte common stock price closes above $3.40.
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"Lineage is working diligently to become a leading cell therapy company and usher in a new branch of medicine, based on transplanting intact and differentiated cells into the body to restore activity lost to aging, injury, or disease," stated Brian M, Culley, CEO. "To support our mission, we have deployed a financial strategy featuring intelligent cost-cutting alongside selectively selling our investments in OncoCyte and AgeX, companies which originated at Lineage prior to becoming independent public entities. Notably, we believe this most recent transaction involving OncoCyte will enable Lineage to have sufficient capital to support our core programs and will bridge us to the $21.6 million promissory note due to us in August 2020 from Juvenescence Ltd. Assuming the Juvenescence note is paid in cash and on time, we believe Lineage’s 2020 budget is now fully-funded and our available cash will extend well into 2021. Moving forward, we will continue to strategically assess and leverage all of the funding mechanisms at our disposal, including our remaining investments and potential partnership opportunities to support the development of our OpRegen, OPC1 and VAC2 programs, each of which may represent billion-dollar market opportunities in the emerging fields of cell therapy and immuno-oncology."