Cambridge UK life sciences company Asterand has entered into a conditional agreement to dispose of its human tissue business to two wholly owned subsidiaries of stem cell pioneer Stemgent, Inc. for $9 million (£5.784m).If shareholders don’t back the deal Asterand says it may have to be placed immediately into administration.
Stemgent, based in Cambridge Massachusetts, works alongside some of the world's leading stem cell scientists in developing innovative technology and application solutions that provide researchers the tools to investigate and understand cellular reprogramming.
The deal is worth an aggregate cash consideration of $9m subject to certain adjustments but hinges on shareholder approval.
Asterand is circulating stockholders with a date and details of a general meeting where the life or death deal is on the line.
Asterand said the net cash proceeds of the disposal – around $7.6m – would be used to pay down in full the company’s secured debt of $9,039m.
The board is also considering quitting the London Stock Exchange, it said in a statement. It added: “If the disposal resolution is not passed, the company may be placed immediately into administration.”
Asterand has had a gun to its head since two debtors, including Silicon Valley Bank, issued default notices on secured debt.