As has been discussed and predicted on numerous occasions before, Advanced Cell Technology (ACTC.OB) is taking the logical next step in its development and looking to conduct a reverse split in order to bring down the share count and raise the price enough to meet the minimum requirements for a listing on the big boards.
Advanced Cell Technology (ACT) has already left an imprint in the field of regenerative medicine when the FDA granted the company permission to conduct a human clinical trial using its stem-cell based retinal pigment epithelium (RPE) program to treat severe vision loss. At the time of the FDA green light ACT was only the second company to have received such an approval, with Geron (GERN) having been the first.
Geron, however, has since halted its pipeline development of stem cell therapies used to treat spinal cord injuries, leaving ACT as the arguable leader in the field of regenerative medicine.
What was missing from the equation was a listing on a major exchange and a share price that reflected ACT's potential as a game-changer in the field of regenerative medicine. ACTC had been trading around the dime mark for years - not necessarily a bad thing for a little-known, speculative biotech working on bringing a new product or technology towards the stages of human trials - but certainly not a place where new investors could gain confidence in throwing significant money into the stock; especially when the target investors may be institutional funds and the more conservative, who will not touch OTCBB or pink sheet stocks.
Should ACT have its way, that will all change.
A Wednesday report announced that the company has filed a definitive proxy with the SEC containing a shareholder proposal of initiating a reverse stosplit. While reverse stock splits tend to be unkind to a company's share price immediately following the implementation of the RS, over the long run this is a good move for any developing company looking to gain credibility and attract serious investors.
Most institutions and funds don't touch the bulletin boards, as discussed above, and a move to the NASDAQ - as ACT seeks - is a huge boost to gaining the credibility of the stock symbol to match the potential of the company's technology.
The move also opens the door for more serious partners to potentially jump on board.
Many investors tend to shy away from companies conducting reverse stock splits, since more often than not a company utilizes this strategy from a position of weakness.
That said, Advanced Cell Tech is utilizing this course of action from a position of strength; as the arguable leader in a next-generation field of medicine.
It's only a logical next step that trading on one of the big trading boards would be the next goal for the company.
Don't expect shareholders to vote against this one.
Disclosure: Long ACTC.
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Originally published at: htpp://vfcsstockhouse.com