AgeX Therapeutics (AGE) Stock Rockets On 50% Stake Acquisition

AgeX Therapeutics AGE Stock News

AgeX Therapeutics Inc (NYSEAMERICAN: AGE) is running for the top in the market this morning, trading on gains that are better stated in multiples than percentages. The gains come after a regulatory filing disclosed a 50% stake in the company. Here’s what’s going on:

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AGE Stock Rockets On 50% Stake Acquisition

In the SEC filing, investors learned that Juvenescence acquired a 50% stake in the AgeX Therapeutics. According to the filing, a transaction taook place on September 15, 2020, underwhich Juvenescence advanced an additional $1 million to the company under a new facility.

As a result of the advance, the company agreed to issue a warrant to purchase up to 588,235 common shares at an exercise price of $0.85 per share.

As of now, Juvenescence holds 21.2 million common shares, 16.4 million of which are held directly. 150,000 shares were the result of warrant exercises under the Loan Agreement and about 2.5 million from the potential exercise of warrants issued in the new facility. Finally, an additional 2.2 million shares may be issued upon conversion of outstanding amounts under the new facility.

What’s The Big Deal?

Essentailly, Juvenescence has become a 50% owner of the company. That’s a big play. Juvenescence is all about increasing human longevity, and sees value in the work that AgeX is doing.

Moreover, the company took quite a bit of an already small float off of the table. That’s exciting for the traders who have jumped at the opportunity and taken advantage of gains in multiples.

There’s also an argument that with Juvenescence now owning 50% of the company, it may gear up for a full acquisition should things continue to move in a positive direction for AgeX. Moving forward, AGE stock is going to be one to watch closely.

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