Advanced Cell Technology, Inc. (OTCMKTS:ACTC) Still Going Down

Advanced Cell Technology, Inc. (OTCMKTS:ACTC) turned red last Friday, when it announced that it had entered into a settlement agreement that forced it to issue a ridiculous amount of shares in order to dodge a lawsuit. A week later it is still falling and only seems to be increasing the downward pace.

It is obvious how issuing 388 million shares of common stock because of an old infraction can shake the investor’s trust in ACTC. On the bright side, the issue seems to have been resolved to the satisfaction of everyone involved… except the investors who had to suffer more dilution, of course. Their displeasure has cost the company 4.39% of its market value yesterday alone, and seems to continue to do so today.

This is nothing new, of course – it is well known that ACTC‘s share structure leaves a lot to be desired. The sad part is, the company currently has 3.75 billion shares authorized, which means it has plenty of room for further dilution.

Still, although ACTC‘s tendency to dilute is certainly off-putting, it’s not by far the only red flag the company has to its name. The conference call on Monday, June 9, that was supposed to give investors a corporate update on the company’s business, did little to reassure investors. It managed to provide some valuable technical insight on the company’s progress regarding the AMD and SMD trials. However, the news were not really good. Suffice to say, the pace that the company seems to have set fails to impress.

ACTC claims that this is to change soon. In said conference call, the company made clear its intent to improve both its financial situation and share structure, in order to be able to up-list to the NASDAQ. At this point ACTC‘s management’s plan seems a bit ambitious – but that doesn’t necessarily mean it is completely implausible.

Unlike so many other companies on the OTC, ACTC looks like it is progressing, and a look at its financials reveals that it actually has some assets it could use to move forward. However, at this point, there seems to be no real way to tell if the company will actually be able to live up to its aspirations. And even if it does – commercial success seems to be a long way away.

Another company that was gliding slowly down in yesterday’s session and is still in the red in todays early trading is is HyperSolar Inc. (OTCMKTS:HYSR).