It’s a good day to be an investor in shares of StemCells Inc (NASDAQ:STEM), after the the biotech firm disclosed in an 8K filing that it entered into an Asset Purchase Agreement with BOCO Silicon Valley on November 11. Under the terms of the deal, the company has agreed to sell certain stem and progenitor cell lines, tangible and intangible assets (IP, books and records) for $4 million. It is anticipated that sixteen former employees of the Company will receive, in aggregate, 15% of the Asset Consideration in accordance with their June 2016 agreements with the Company under which each accepted a more than 50% reduction in his or her severance award otherwise payable. It is also anticipated that, following the completion of the Asset Sale, $400,000 of the Asset Consideration will remain in a twelve-month escrow for the benefit of BOCO US to satisfy certain indemnification obligations of the Sellers which may arise.
StemCells shares reacted to the news, jumping nearly 36% to $1.46 in Wednesday’s trading session. STEM has a 1-year high of $7.56 and a 1-year low of $0.33. The stock’s 50-day moving average is $1.14 and its 200-day moving average is $1.22.
StemCells, Inc. engages in the research, development and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The company is focused on developing and commercializing stem and progenitor cells as the basis for novel therapeutics and therapies; and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. StemCells research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents.