2nd qtr CC transcript,
Brian Murphy: Gary, how are you doing Sir… long time Advanced Cell Technology shareholder… seen the stock go up and down… congratulations on your new permanent position. You mentioned what we have to do for a new capital structure. Well we all know with about 1.6 billion shares outstanding, moneys need to go more towards clinicals, I think at the moment, to which you agreed, than to adjust the share structure. Now, you know what most investors hate is the phrase “reverse split.” Is that something that would be an option or given the cash position would a share buyback be something that you may or may not have discussed already as well.
Gary Rabin: Ok… I’ll take that two-part question in order. First of all, my background is largely in Finance. I was an investment banker at various investment banks in New York City from 1987 til 2002 and after that, I was a hedge fund manager from 2002 to 2010. I know the history of reverse splits. And what I have previously articulated and that I will articulate again is that I do not want to go to my share holder base that I have spend a lot of time in the last 8 months trying to engender good will and create transparency, and explain the strategies about this company. I don’t want to go to that share holder base and ask for a reverse split until we got something really good to talk about, whether that’s trial results, a partnership of some kind, or some other significant news. I know very well that most reverse splits are, at least in the short term, value destructive. And I am very much in agreement with the investors that have called me and, obviously, from the tone of what you are suggesting, with you as well, that I do not want to do one unless I can do it, you know, coming from a position of strength. And, you know - look, the truth is, would I prefer for this company were listed on the national market? Would I like to be on NASDAQ national market? Yes. You know, the biggest hurdle for us being on the NASDAQ national market is our share price. And so, at some point, would I like to have a more institutional component to our shareholder base than we currently do? Yes, I think it would be value creative for everyone if we can have the largest mutual funds and hedge funds be able to buy our stock. Yes, that would be beneficial to everyone. But, I want it, like I said, do it from a position of strength and not one of weakness. So, I think that pretty well should answer your question on that…Operator, next question.
