here's why I'm beating my drum today. I have been here since March. I have watched this Company very closely. The non-science aspects of this Company is frankly, a joke. 15 employees? Just a bunch of folks running around trying to get their name in lights? They've been more concerned about PR's than developing the Company's ability to make money. What are they hoping to accomplish? Why haven't they started spinning out their products that have patents to joint ventures to generate cash? This is NOT truly a biotech company. This is a research lab simply doing research and running a small trial.

I keep hearing from the faithful that there's this product and that product but no real deals generating revenues of any sort. It is called research. Again, keep on that pathway for a year or two and I can guarantee you that they'll get another $30 million in cash at $0.07 a share. A dilution of over 400 million shares but a cap on the valuation for shareholders. Are you aware that investments can go sub-penny?

This guy Rabin who thinks he's a big cheese is a piker. He wouldn't know a deal if it bit him in the #$%@@. He spent 5 months lobbying to be the CEO and 2 months negotiating this complex compensation scheme. Sorry to be rather rude but, the faithful needs a truth teller here. I'm just not seeing what will bring value to the table in the next year given there's only one so called "businessman" running the show and he's not cutting it for the shareholders.

If I'm not seeing it, I assure you that it will take someone with a heck of a lot more faith to bring the 100s of millions of bucks to the table to buy this company. I've seen deal guys get fired and then sued for a miss of only $5 million. This is a $100s of millions of bucks situation.

I could go on and on but that is just hubris. I suggest that you take a serious look at your own interest and how much you are willing to risk from this point forward. After all, Monday is the start of the 4th Quarter of 2011 and they are only shooting the eyes of the 2nd person of each trial? You best take out a pencil and see how long it will be until this trial is over... Middle of 2013? It is looking like year end 2013 for me.

Do your own time line. We were told 6 weeks. It started July 6ish. We are now in the 12th week post. Hopefully we can blame all of this on the DMBS. But is that the case? How would you know? Will this drop to 10 weeks per patient? 9 weeks? 8 weeks?

How many segments of time are left? 2 + 3 + 3 + 3 or 11 times 6 weeks for the cohorts to run to conclusion = 66 and 11 times 3 interim weeks is 33 more weeks or 99 weeks in total? That pushes this to 1 year and 47 weeks. Darn near 11 full months. That's mid to late 2013. And that is assuming clean results. In such small samples, 1 problem could cause a major delay. I know what the critics will say, "they'll get permission to shoot 3 people of each cohort at one time." Yes, if the safety hurdles are passed. But, this trial is for safety first and not efficiency.

And that only gets us to the conclusion of the Combo Phase I / II trial. There's write up time and the FDA review time and that pushes the next phase into 2014 for a start date which means a longer time for FDA approval without a modification of the time lines. I sure hope the DMBS will relax the protocol and allow for each cohort to be shot independently. But, that's not realistic given their mission.

So it leads me to a rather uncomfortable position as an investor. I'm not exactly sure what will happen first... dilution or conclusion of the Combo Trial/approval to go on to the next level--the Combo Phase II/III.

Corollary concept. If a merger partner or as I call it a Big Brother Pharma or BBP decides to come along and scoop up the patents, rights, and eventual cash flows Our RETURNS will be completely dependent upon the translation to the BBP's stock price / number of shares they are willing to part with in exchange for a controlling amount of ACTC shares outstanding.

Example... If BBP's stock is $10 a share and they want to buy ACTC for $500,000,000 (a very healthy premium over today's capitalization level), this means they want to use 50,000,000 shares to exchange for 1,700,000,000 shares. Simplifying the math that gets us to 50/1700 or 5/170. You'd multiply your total shares by 0.029411 to get your shares upon conversion. If you had 1,000,000 shares before the transaction, you would end up in BBP's shares with 29,411 shares (the remainder in cash). If the street felt the value was an OK valuation and kept the transaction at par, you'd end up with a portfolio value of $294,110. You could then compare the value with your purchase price of your former million shares to see if this was a gain or loss.

In sum,the dilution of the stock is an anathema to the common shareholder. The more dilution due to tangential spending, the less your eventual profit will be... in REAL Terms. This is why it so necessary to be involved with the ACTC Board and demand that they adhere to proper consideration and stock price maximization going forward. This stuff for Europe, trade shows, and University confabs wastes shareholder interests.

It is time for ACTC to start acting like a for Profit Company and safeguarding the interests of its shareholders.

Let's define a "lot of shares" outstanding. But, we can't do it justice until we earn say $1,000,000 net, net, net.

If I have a million shares outstanding, ok a $1.00 EPS. If I have 10,000,000 shares outstandinng, $0.10 EPS. A 1,000,000,000 shares, $0.001.

Here's the argument... what does it take to earn $1.00 in EPS? If a Company has a 50% net profit margin (a super successful young biotech), that means that they need $2 million in sales with 1,000,000 shares outstanding. With 1,000,000,000 shares outstanding, it will take $2 billion in sales.

I guess you are now seeing what I'm seeing. Even with a $30 billion unmet medical need, what penetration will there really be after 5 years of trials, approval and Company development. How many shares will really be outstanding when they start the money machine phase of this Company? 2.5 billion shares outstanding?

How will this Company ever get to a decent earnings per share where a real multiple might be attached?

Let me let you in on a secret. I'm here to invest in cutting edge science BUT, I do demand eventual profits for my investment. If I don't see that development truly happening, well I'll be sorry for spending time here and probably losing some money on ACTC.

Sorry to be so hard edged about all of this, but, ACTC has to compete for my investment dollars like any other company. This is NOT a cult. This is an investment.

Thank you for pointing out the cash reserves available, Rocky.

In order to determine how long the cash will last and thus avoid dilution, the most important question to ask, "how much will the next phase of trial's cost, and will it be a combo trial, a Phase II / Phase III?"

Then, how many patients will have to be part of the next phase? 100? 200? more?

How many sites? 10? 15? more?

How many Phase III trials will be required? 1 or 2?

You can see by the complexity of numbers, the challenge will be to stretch the dollars extremely carefully.

That is, unless the Company is bought out by then. But then, I'd expect the stock to rise instead of descend.

By understanding these basics of biotech trials' cost, you can see why some of us are scratching our head about the PR and Europe.

I think the conumdrum that ACTC is facing is that they have an appetite to expand their business without any source of capital apart from issuing shares. Whereas it is typically healthy to have trials in the UK, the real question that has the Street puzzled is "who will pay for the trials in the near term". That is a real conumdrum for this investor.

The street is smelling dilution and more dilution and losing interest in the payoff in North America. Why? Because the costs are near term (heavy costs) and benefits are well out into the future. Don't try to sell me on pie in the sky in the bye and bye. I want to understand just how badly dilution will hurt this Company? If the CEO and CSO are given multi-million shares, why would they care about dilution when their shares are free? At this point their renumeration and the common shareholder goals are not congruent.

It is very hard to even try to come up with a mechanism that will put this Company on an economic footing. Worse, Rabin is not pushing forward the development of this Company as, well, as a commercial business. He is the CFO, CEO, President and Chief Bottle washer. That smacks of being almost as a one-man band and the street grows weary of this sort of thing.

The Street clearly wants a pathway to profitability. A sense of what truly is the critical pathway. Being in Europe is NOT on the critical pathway at this point. Duplicating US trials might be ok if you are JnJ or Bayer, but not for a micro-cap biotech.

Thus, a lot of shares have been and are being dumped because the Street does not believe the infrastructure can handle the trials efficiently and effectively.

At least that's how I see it from my perch.

Thank you, Louisa. You have been wonderful to share so many links with us.

Here's a question for others that might know the answer....

Why England? Is it a replication of the US Phase I/II trials?

Will this trial be self funded through an agency of England or will this hit ACTC's cash?

Thanks in advance.

Thank you, Louisa. You have been wonderful to share so many links with us.

Here's a question for others that might know the answer....

Why England? Is it a replication of the US Phase I/II trials?

Will this trial be self funded through an agency of England or will this hit ACTC's cash?

Thanks in advance.

The CEO Rabin must start to recognize that until he can create economic value from a PR, PR's will simply be viewed as nice info but nothing more in the eyes' of our stock price. This is a difficult concept for those that have had great success from scientific breakthroughs. But, as this Company has so many millions of shares outstanding and continues to repeatedly dilute common stockholders interests, the market is being forced to justify owning ACTC more and more on an on-going basis and not as an R&D shop.

Example...Let's say there's 1.5 billion of shares outstanding. To generate a buck of increased value at an 8x sales, the Company would have to have $187 million of sales. (1.5 billion sharesoutstanding / 8).

So, if a PR announces a breakthrough, how long will it be until that $187 million in sales shows up? 10 years? 5 years?

And how much will the street discount the sales for risk adjusted current values? 20% per year?

Suddenly the sales of a distant product are not lucrative. The discovery ends up being sold to a much bigger company for quite a discount.

Thus, the PR News doesn't move the stock much.

The street just won't give value willy-nilly to little biotechs any longer given the amount of time needed to push trials through the process.

As a result, we'll get scientific breakthroughs but not much value added to our investments in ACTC.

Unfortunately, this is a very long process.

The trial design is like a tea leaf water fountain where one leaf empties to another to another to another. There are a few steps in this trial that are time consuming. This trial's purpose is to prove to the FDA that the placement of the stemcells into the eye are completely safe. Thus, there are 4 cohorts to test 4 different concentrations of stem cells injected.

Once the first patients have not rejected the 50,000 placed stemcells nor migrated to any other location within the eye, the Company will get the go ahead to inject another patient's eyes. This is anticipated to take 6 weeks. Then with a couple weeks for the review agency to confirm the results, the Company will compile the data with all of the intendant data into the database. There are 3 patients in each Cohort. We are looking at 20 weeks, minimally to complete the Cohort. From early July, we are looking to mid-November for this phase to be complete.

The Company is trying to short cut the process to a degree. They gave this a Phase I/II. This really means that they will not only prove that the Product is safe, they will discover the best number of cells to be injected and that the result can be repeated at other sites besides UCLA/Oregon. So, the next cohort has additional stemcells injected. The number goes up then to 100,000. Repeat the amount of time.... etc for another 20 weeks.

Let's simply say that this trial is going to drag on until at least Oct 12. It could easily take until the first quarter of 13.

Then, the Company will need a chance to develop their data for submission to the FDA to see if their data is acceptable proving that the data is safe for a larger scientific trial to prove that the surgery does provide efficacy. That trial could easily take 500+ patients. That will probably be a multi-site, much, much larger trial and will be very costly. It could take as long as 2 years to plow through.

Lastly, the FDA application process takes longer than 4 months and the FDA review takes longer than 6 months.

This is why the world of medicine and drug approvals are quickly moving offshore to Indonesia and Malaysia. I'm surprised the Company failed to understand this basic business fact.

Medical breakthroughs are definitely an endangered specie in the USA.

I think many here may not appreciate how long it will take to write up the trials for licensure once the trials are complete. It's my experience that the writing phase is longer than expected, especially if there's any controversies afoot. Secondly, the FDA, besides being a scientific driven department must thrive within the larger US bureaucracy and that mean political pressures to come to bear upon those that write up results.

And then, the FDA can take as long as a year for its review. If the therapy/drug gets fast track, then the approval time might be as long as 6 months.

It is my humble suggestion that you not make bets on any pre-approval biotech company if you aren't especially patient.

In the back of my mind, I'm thinking that ACTC might be a 2013 or 2014 approval... And if that's the case, real values won't be ascribed to it until the quarter before approval "if it is likely to be approved..."

Why didn't Rabin give more info? Believe it or not, he is handcuffed as to how much info he can share. The FDA does not want the trial published out on the internet before they get the info. They will kill the trial if the data is placed out on the internet. They are extremely tough on this point.

Do not expect specifics on the trial's results going forward until the Company publishes their findings after the trial's complete.

Pink Sheet trades are not allowed by the Nasdaq System. Any before market/after market are exceptional and are part of the Market Makers wholesale operation.

The exchange is required to record the daily transactions to the SEC. All we are seeing a their EOD trade. They take the last traded shares on the exchange for that equity. No big deal. Has nothing to do with the Pink Sheets unless the stock has moved significantly in the Pinks. This then causes the Cincinnati Exchange or the Toronto Exchange to correct the NASDAQ.

Is the an arbitrage situation? No. Merely a reporting issue for the Exchange.

Realize there is no clearing between the Exchanges. The clearing occurs between Market Makers and their banks. The Exchanges are merely reporting to their regulators. The Market Makers have to clear their Net Balances each evening with the Bank. The Banks will automatically forward funds overnight if the MM is short on a temporary basis demanding a formal repurchase agreement signed. (A market maker will have such a repo line of credit already established with a Commercial Bank(s). It is a pain for the Market Maker to be funds short. They have to cover their cash short before trading begins the next morning.

So, with all the different stocks a Market Maker will handle, they need to exchange shares quickly with each other to be net funds neutral with their banks.

I believe such a trade is between market makers where they are simply transfering positions upon negotiation.

The ACTC.OB is for us retail investors that are merely using the pink sheet market makers for ACTC.

FYI. This Thursday concludes the 6 weeks post initial injections for the first 2 patients.

Yes. That's why I asked the question. It will be a "Good Housekeeping Seal of Approval" that the first 2 injections were "safe". That, to my way of thinking, could be a signal to the market to become more optimistic and fulfill our Company's comments that ACTC will gain value in the months ahead.

It's important for us to understand what events will increase value. At this point, the prediction of events (words) may not raise the share price as much as successful milestones completion (i.e. additional patients receiving injections or a cohort completion and a move to a higher dosage of cells).

Good luck.

Thank you, interstate. I hope they will announce these 2 injections.

Let's assume that you own 5 million shares and feel that you need to cut your position by 4 million shares.

The best way to approach this is as a business. On a particular day of the week sell 50,000 shares. Once a week. Just keep after this program regardless of share price.

As to timing, there is none. As to maximizing your return, you aren't asking that question for I'd say hold for another 4 years.

If you constantly try to time your sell prices, you'll end up a nervous wreck as who can predict the market's behavior?

I certainly can't. But, if you need to reduce your holdings, again with advice from your personal attorney and accountant, do it in a businesslike manner and you'll achieve your goal without spending a great deal of emotion.

Additional injections on the horizon?

My brother mentioned that Lanza said that they were pleased with the last round of injections and were planning on their next 2 patients. Can anyone here confirm that for me?

Look at the Lanza and Rabin contracts as a real cost of doing business. We want our key guys incented to buy shares... big time. Yes Lanza's contract seems rich at first glance, but without his unique knowledge, how does ACTC get their products defined for the FDA, tested, reported and approved? Yes, there are other scientists in the field, but, to keep a guy working and being focused on bringing value to the company is cruicial. Lanza will have to attract talent to the Company for the Board and for various departments as he builds the Company. You just don't wake up one morning, snap your fingers and voila' you have yourself a company. No, if these guys do as well over the next couple of years as this have done this past year, we WILL all be enriched by their results.

Or just once in a long while, you buy Enron. Something comes by that you just have to buy and you sell out 3 months before it crashes. Yes, there is such a thing as "dumb Luck".

Let me chime in on the chorus that is castigating you. You say you are an investor and you do understand ACTC's trials much better than most. I find these assertions completely rather surprising given your posts on this board. Others have pointed out the compelling science by ACTC that does away with the old notion that stemcells are life threatening.

In fact over the past 2 months, there has been ample press about the Blastomer Scientific Breakthroughs. May I humbly suggest that you look at the past 2 months press releases to get up to speed? The truth be told, I was skeptical with the science until I studied it on my own. I was not satisfied trusting others to tout the science. When done with my personally assigned homework, I was quite impressed with the ACTC Science Team that accomplished this feat. They have accomplished a Nobel Prize level of Medicine breakthrough. Yes, it will be that important 10 years from now.

Time and again, shareholders of very early stage biotechs have to educate others about their cutting edge science which will lead the potentially new shareholders into a significant holdings. I hope that when you have completed your homework that you come to the realization that Regenerative Medicine will take off like a rocket without endangering life.

In fact, there are so many opportunities for the businessmen using ACTC as their platform of choice, it will boggle the mind.

Good day and good luck.

Let me conclude this week by congratulating ACTC's Scientists, their staff and their patients. This was a historical week by any measure from a science standpoint. I am so proud of your accomplishment this week. I'll keep my fingers crossed for favorable reviews in 6 weeks.

Having been at the table running a 100+ million buck fund, I simply gave it to you the way they valued companies. Realize, you are focused on one tree in the forest. When we used to go around the table to discuss 75 to 125 companies, we latched onto our keys for value.

I simply answered the question how do you value... and you can do whatever you want with this.

Here's a quick and dirty quide on stock valuation.

Look at the total stock outstanding. What's the current stock price. Stock outstanding times current stock price = capitalization starting point.

Subtract out long term debt add in net impact from net current assets. This roughly equals essense of value for investors.

Specifically for Biotechs, take the likely year revenues will begin. Say 2015 for ACTC. How much added cash will they need before they start cashflowing? $100 million? Recall they have to get through safety trials first. Then they have to have an indication that there's enough efficacy with their therapy/drug to warrant FDA approval.

Then the Company has to begin the process of building towards commecialization.

So, the Street caps value. I'm surprised that ACTC has gotten up to $0.27 in the past. Also, I've pointed out that the street is valuing them around $275 to 300 million. That's rich for a pre-phase I/II company on the street. With a successful completion of this phase AND assuming no stock secondaries for a minute, the street will value the Company at $400 to $450 million. Of course that pushes the share price to $0.27 to $0.29 cents.

Thus, if the Street gets ahead of itself in valuing ACTC, the shorts will swoop in and bring it back down. Don't look for significant share price increase until ACTC gets the OK to start a Phase III trial.

On a side note. Notice that these values are not absolutes. If the general market has a big sell off, then the values above will have to fall. Secondly, whether you reverse split the shares or not, the total values won't change unless the Company brings REAL VALUE into the Company like new patents or a joint venture.

Additional funds might invest in ACTC with a reverse split. Again, if this happens, short hedge funds will jump in and reduce the valuation until they are satisfied with the lower values and close out their short position.

Trying to understand why momentum traders jump into any stock, run it up to ever new highs, and then dump the shares quickly is not for the feint hearted. A stock's action will take on a life of its own. Coming up with explanations can be a fool's errand.

Don't lay more meaning on the injections of the first 2 patients. If the trial goes smoothly, they'll shoot another 2 patients. and then another 2. and so on.

This is NOT a quick burner. I would hesitate to suggest that Wall Street will increase the capitalization at ACTC until major milestones are accomplish.

Remember, with 1.5 billion shares outstanding, each penny added to the stock price means $15 million in more capitalization (shares times stock price). I strongly doubt they'll value the Company (increase the cap) higher than $400 million until the two Phase I/II are successful ($0.2666 per share). If they do, that will be a very nice surprise!

For those following the minute by minute stock price flux and expect an answer, give up now while you still have your sanity. May I suggest a different approach? I call it keys to gaining stock value in a Biotech World. The stock market wont give you your expected value all in one day. Here are a few key steps along the way that will provide incremental value to common shareholders.

1. Look for scientific news/pronouncements/breakthroughs within your markets. (hESC in the case of ACTC).
2. Be sure you completely understand the inventory of trials that are on-going and their maturity.
3. Look for Form 8ks being filed with the SEC that summarize the trial results.

Down the road as the Company matures
4. Look for statistical analysis for their trials.
5. Look for article presentations in prestigious scientic/medical journals.
6. Look for favorable commentary by peers.

Stock Market acceptance
7. Look for key biotech analysts to recommend the company.
8. Look for funds taking new positions in the shares.

Further down the road
9. Look for filings with the FDA.
10. Look for FDA approvals of the therapy/procedure.

The concept of a Phase I/II elsewhere can sometimes lead to an immediate application to the FDA to approve a Phase III trial. I will of course not pound the table to make this point. It goes back to the data and the statistical results.

I am thinking out loud that they are including the second part of the trial to help them with a full Phase II or set up... a Phase II/III combo trial.

With the FDA demanding 2 independent phase III trials showing significant statistical benefit, I've seen a shift to combining trial levels in order to speed up the process.

But, Rocky, I am already in your debt with your gracious, constant sharing of information and only post this as a possibility down the road. Let's just keep this in our back pocket for the time being.

Rocky, I thought we were doing a combo Phase I/II.

Happy 4th of July weekend to all. In one year, we will have the data in from the 2 Phase I/II trials. I'm investing in this company like this therapy works. The Company will be either gearing up for a phase III trial or in a phase III. The stock will be above $1 because, the scientific breakthrough looks great and will help so many future patients throughout the world.

I wish all of you the confidence it will take to see this Company through the FDA trials. I hope that you all have guts of steel and the smarts to load up your portfolios with ACTC.OB.

Many will one day wonder how in the heck did you know to buy so many shares, so cheaply.

Thank you, Rocky. I will study them this weekend.

Rocky, thank you for your reply. Given the miniturization of cameras and all, I'm wondering if this therapy would then require a very small sort of device that would fit inside the needle and help guide the surgeon to the cells in question? It would sure make sense to deposit the cells into the channel in the right number. I'm sure Dr. Lansa has had this procedure worked out for years. Like Louisa's comments, this is a very difficult subject for most of us. But, I would imagine that the sedated patient's head would be immobilized and that the machine used in conjunction with the needle would be extremely accurate. Afterall this isn't the first sort of surgery of the eye and this must be routine. I'm just curious. Thanks.

Question: can someone describe the process of such an injection for me? I suppose this will take a special machine that will define the desired location (the channel of cells) where the hESCs are to be placed. That the doctor will find that location using such a machine and then steadily place the cells in layers.

But, that's me just guessing. Does somebody have a link to the procedure?

I've only been here a few months. Gastrodamas is a paid hack to upset the board. These sorts are troll-like. They say whatever will get a reaction. For those unfamiliar with this tactic... There are Hedgefunds that are strictly in the stock market to short stocks, biotechs in particular. Their sole purpose is to reign in small retail investors as fast as possible. They do NOT want word of mouth about a stock. They want the short to go down as far as possible. Marketmakers also jump into the fray by creating phantom shares. Shares where a stock is sold but, the transaction is never cleared through the DTCC, the clearing house. That is, a fails to deliver situation occurs. The stock falls in value with the transaction, but, the completion of the deal never occurs. This is of course an illegal practice... but the veracity of the markets is not enforced by the SEC. So, to get the ball rolling downwards, Hedgefunds hire guys like this person to bad mouth the CEO, the products and create an atmosphere of Fear, Uncertainty and Doubt. The major players that have been here the longest should get this guy tossed. He is not an innocent, bumbling shareholder. He's a wolf in sheep's clothing paid to take the topics down a predictable pathway.

Momentum Buying. Is this an Ok strategy?

Many seasoned investors only like to jump into a hot hand. They could care less with rumors, manipulations and bear raids. They simply want to jump into a stock that has the prospect of going up for a few days, grab a few nickles or bucks along the way and bail out. Some even do this on a daily basis and try to be on the sidelines each night.

Is this a good strategy for ACTC? Of course. If you have an incredibly fast computer and the software of a lightning bolt. It will be incredibly difficult to grab shares at a cheap enough price when the reports go out that the ACTC trials are successful. Recall we are talking about a $30 billion buck market worldwide.

That if ACTC could give a major partner an entrance to that kind of market, just how much would a partner be will to pay. An easier question would be... how much would you be willing to invest for a major share in the "Comstock Lode"? As in being able to own about $200,000,000 worth of high grade silver?

I don't think I could hype up ACTC as an investment vehicle enough to give out a proper picture for the casual investor with THAT kind of potential sitting there.

And get this... if the FDA is going to sit on its hands like Dendreon's Provenge and demand a huge bunch of additional trials due to vested interests within the FDA, the rest of the world will want its population to see, don't you think? I'm sure the UK, France, Russia and even North Korea or Iran could "see" the benefits for their populations with this therapy once it is established that it works.

So, how could anyone buy in low enough once such a giant boulder begins to roll down hill? It will be stand in line buddy and the queue will wrap around Wall Street a couple times.

Executive shares. These actually have a real value. By retaining Landa and Rabin, the Company is a going concern. Sometimes incrementally issued shares to keep talent is the highest return on investment. If you focus on them being free, you are missing the entire boat. If you focus on what the Executives do in the next year and how they will accrete value to the common shares, and then multiply those shares by the share price in one year, then you will see the value in issuing incentive shares.

Please, let's incent the Executives and Employees in such a way that they think like they are owners. That's how we'll get the highest returns on our investment.

Rocky, Thank you for your continual, compelling reseach AND sharing. You are making this a most interesting investment. And yes, I'm not stopping there. Many thanks to the regulars that contribute to this message board. Kudos for opening up my eyes to the TREMENDOUS breakthroughs by this company's science team.

Gastro, let me answer your question as there might be a few folks that have the same question. <<If the company bought back a half Billion shares and retired them would that lower the market cap? >>

Focus upon what it will take to reduce shares outstanding. You can either use cash or borrow funds. As the Company increased the shares outstanding recently to retire indebtedness, going back into debt would seem to be a circuitous pathway and probably is not their choice.

So, let's talk about how to retire 600,000,000 shares @ 0.19 a share. That would take about $150 million in cash or in valuable assets or $150/114 or a premium of 31.6%. Why not 0.19 times the 600 million? Because the investment bank is going to charge the small company an arm and a leg to do the transaction. In other words, buying back equity is very expensive for small companies.

So, where does the Company get $150 million in cash? Ah, there's the conundrum. If they had the cash on the balance sheet with enough left over for operating expenses, fine. But they don't. So, what could they sell to generate up that kind of money? Now you see why they won't. Why give up future profits?

What you are really asking is why not do a reverse merger. This strategy is a mixed bag. The street let's small companies do reverses only as a last result. It is a traditional death spiral signal that the Company has to raise their stock price in order to finance as many covenants and conditions of getting a loan require the shares to be selling in excess of $5. Why? Because the banks will off-load the debt to funds and they wont finance a deal with the collateral under $5.

It makes no difference if the share price is $0.19 or times 25 or $4.75. The shares adjust proportionately. The shares would decrease by dividing by 25 or 1,500,000,000 becomes 60,000,000. You get to the same value either way.

$0.19 times 1,500,000,000 = $285,000.000
or $4.75 times 60,000,000 = $285,000,000

The point remains, the CEO, CFO need to focus on adding value and not playing math tricks with the number of shares outstanding. You don't gain value by doing a reverse merger. And, funds will only invest if they think your product will be approved by the FDA. We are a long ways from that plateau.

Deal cuts? 20 to 30% of the gross profits with kickers in as certain thresholds are made. Like $2 billion in sales. Like $5 billion in sales. If so, the ROI percentages can be staged upward.

Key. First partnership is product specific. Cash generated funds rest of opportunities. But, also, partnership defines value of the smaller company.

Look at Roche and Genetech for a good basis for partnering. Yes, by the end of the deal Roche ended up eating Genetech, but, they really encouraged the development arm of Genetech to push out products.

In the world of Stem Cell research, this is the competitive advantage for ACTC. Their scientists and creativity.

If I were going to short a stock, I might pass on ACTC for this very reason. If you guess wrong and base your entire strategy on the fact that the science won't work, you might be making a BK strategy because this Company with A) a successful PI/II for Stargarts and dry macular degeneration and B) a quality partnership, you might lose 90% of your collateral needed to make your short.

I'd hate to wake up one morning and be looking at a $5 billion buck valuation made overnight because the PI/II was successful and a major Pharma signed up ACTC to become their Stem Cell Research Lab... and brought forward a billion bucks just to incent ACTC to do the deal...

Conversely... that would just be the "beginning" for ACTC's scientists.

Rangios, the biotech world can sometimes be rather independent of market conditions IF the company is entering into an information transistion zone. With important news of breakthroughs, approvals or favorable data pending, biotechs tend to plow right through market waves. Yes, the highs might not be as so desired as the cash in the market is fleeing perceived danger... but, biotechs tend to become safe harbors in rough times. Let me make an important distinction though... The biotechs I'm refering to in this post tend to be pre-approval companies that don't have huge valuations in the marketplace. They are therefore pretty cheap in comparison to other biotechs. The idea here is that there might not be much ground to lose in a market downturn. Also, the immediate prospects outweigh market risk. In this sector, timing of new news is what will drive the stock price higher or keep it stable more than market news.

Hope this helps. Good luck.