By: TOMI KILGORE/EMMA COURT – August 17, 2016
The day that StemCells Inc. entered a merger that sent its stock rocketing up sevenfold (albeit to $2.36 per share), the company’s chief executive and chief financial officers effectively resigned, as did three members of the company’s board of directors.
The reverse-merger with Israeli private company Microbot Medical Ltd. was “unanimously” approved by StemCells’ STEM, -1.09% board of directors on Monday. Three of the members of the board resigned that day “in connection with the announcement of the merger agreement,” according to the SEC filing, leaving three other members that will continue to serve.
“None of the foregoing resignations were the result [of] any disagreement with the company on any matter,” according to the filing.
The reverse-merger also marks an abrupt departure from a plan to wind down the company in the face of limited financial resources that was announced just two-and-a-half months ago.
Microbot and investors said they would provide $4 million in financing as an incentive for the merger, which should fund StemCells operations after the deal closes for at least 18 months, the filing said.