Under the agreement, Transition agreed to acquire a license to the technology for $2.5 million, which includes the extinguishment of $1.5 million of debt and an additional funding commitment of $1 million.
The intellectual property does not relate to any of the company’s advanced clinical programs. Advanced Cell Technology expects to apply the proceeds it receives in the future towards its retinal pigment epithelium cells program.
William Caldwell IV, chairman and CEO of Advanced Cell Technology, said: “We are pleased to monetize this intellectual property in a way that raises non-dilutive capital for our shareholders.
“During a period when the capital markets remain highly challenging, particularly for small companies, we have been able to advance our clinical programs through funding from strategic partners like CHA Biotech Co and by the licensing of intellectual property unrelated to our core platform technologies.”