Advanced Cell Technology, Inc.(OTCMKTS:ACTC) Stable As A Rock Again
Advanced Cell Technology, Inc.(OTCMKTS:ACTC) has had a turbulent year. Off to a mind-numbing start in the first few days of 2013, when their stock suddenly jumped from the measly $0.0557 up to as much as $0.0981 over the span of just three sessions. Since then, the company has been waging a war to maintain said height, but sadly they’ve had less success than their efforts deserve.
Share prices had been on a continuous decline right up until June, when the stock jumped almost as high as the last time in a similarly brief amount of tine. And then it continued its descent, faster than ever. A familiar pattern, one that can be observed all throughout the ACTC charts.
In the last couple of sessions, ACTC seem to be on a steady rise, after the 9.28% drop of Dec. 23. A significant change, by the company’s standards, the fall of share prices was the direct result of their filing of a pre-Christmas 8-K report. Which was not all that optimistic.
The company admitted to being bombarded with lawsuits that have so far, and will most probably continue to, cost them a fortune. For a couple of years now ACTC has repeatedly been slammed with complaint after complaint before court after court, and although the company has always come out on top so far, as they stated – this harassment “may prove to exceed our estimated reserves”. Payments for legal actions, made in the form of stock were mentioned as a necessary measure, which, as the company itself had the decency to directly admit, may prove to be highly dilutive to stockholders.
Every order that the US Court has issued so far clearly shows that the continuous legal battery ACTC is enduring presently is rooted in spite rather than actual legal ground, which is encouraging. However all legal actions, even successful ones, tend to accumulate expenses at an alarming rate.
Overall, however, it did not cause all that much of a ruckus. ACTC has always enjoyed the support of strong and loyal backers, with almost preternatural trust in the company’s imminent success, despite the arguments for the contrary. Arguments like the figures listed in their latest financial report, that clearly shows that their revenues are in a state of atrophy, having decreased significantly since the last quarterly, while their net loss has ingreased by almost $0.6 million and now approaches $19 million.To their credit, the company has had the honesty to admit to shareholders and potential traders alike, that a single lost battle in court could have catastrophic effect on their operating results, financial condition, and therefore – stocks. Granted, the report was filed on the eave of a great holiday, when it was more likely to go unnoticed that on a regular business day, but it was still honest and informative.
As well as the expenses listed in the company’s second holiday 8-K. This one came out a mere three days after the first, as the company announced that an agreement that would decisively resolve their recent troubles has been reached with the SEC. The company had violated Section 5(a) and 5(c) of the Securities Act of 1933 and was facing serious legal repercussions, but managed to negotiate with the Commission to make monetary compensations for its misgivings. The total amount owed is calculated at approximately $4.1 million, and is to be paid over six equal quarterly installments, the next one due in late March 2014.
All in all, the bad news did some harm the ACTC, but their standing on the market stabilized immediately after. The company’s been on the rise during the last two sessions, after their most recent drop, but the increase in their share prices so far seems to be negligible – 2.31% and 0.81%, respectively. Only time will tell if the last few days of the year will bring them a new staggering leap or, possibly, a further decent into depression.
