Ocata Therapeutics Inc fka OCAT

[fordwill1953]

The SEC lawsuit simply clouds ACTC's future prospects. It isn't just about cash and funds raised in the past. It is about reminding potential joint venture partners going forward that ACTC has a special reporting relationship required with the SEC until the matter is cleaned up. It means that the Koreans, the Chinese and even the Japanese potential partners have to ask a serious question regarding ACTC. Can ACTC meet obligations requested in any partnership letter given the threat of the SEC lawsuit?

In some cases the answer is probably yes. But, with ACTC, they don't have an abundance of cash sitting around. If the cash gets placed into an escrow account with the SEC, that could be a very serious matter. That could happen if ACTC is viewed as an equal partner in the fraud.

No such actions have occured, of course, because the case isn't near adjudication. But, a threat of such is very damaging to their future prospects. Behind the scenes, you better believe Rabin is having a difficult time getting his lawyers to cut a deal with the Government. The Government is going to use ACTC to nail the Syndicator and Processor of the fundings. Thus, this matter may take a couple years.