unknown liabilities and unforeseen increased expenses, delays or regulatory conditions associated with the Merger; and|
shortfalls at one or both of the two companies as a result of the diversion of management’s attention caused by completing
the Merger and integrating the companies’ operations.|
addition, BioTime and Asterias have operated and, until the completion of the Merger, will continue to operate, independently.
It is possible that the integration process could result in the diversion of each company’s management’s attention,
the disruption or interruption of, or the loss of momentum in, each company’s ongoing businesses or inconsistencies in standards,
controls, procedures and policies, any of which could adversely affect our ability to maintain relationships with collaboration
partners and employees or our ability to achieve the anticipated benefits of the Merger, or could reduce the earnings or otherwise
adversely affect the business and financial results of the Combined Company.
availability of cells will impact the time and cost of commencing our research and product development programs.
cells, cell lines and other biological materials that have been acquired by Asterias are being stored under cryopreservation protocols
intended to preserve their functionality. Asterias successfully completed the verification of the viability of the lots of AST-OPC1
(as defined below) cells that Asterias has been using in its current SCiStar Phase 1/2a study. However, Asterias does not currently
have sufficient amounts of AST-OPC1 cells to complete a large randomized control trial or for future commercial activities. Asterias
is developing additional cell banks and modifying its process to generate sufficient amounts of AST-OPC1 cells for use in future
trials. These process development activities may increase the costs of the Combined Company’s product development for AST-OPC1
and the ability to complete these activities will impact the ability to move forward the overall AST-OPC1 program.
manufacturing of cells for our clinical programs is difficult and costly.
Combined Company may need to rely upon third parties to produce AST-OPC1 cells for future studies and commercialization. Asterias
is currently relying on CRUK (as defined below) to manufacture AST-VAC2 for its upcoming Phase 1 study in the UK. If the Merger
is completed, the Combined Company will not be able to give any assurance that the Combined Company or any third-party manufacturers
used by the Combined Company will be able to develop the manufacturing capabilities necessary to supply adequate amounts of product
to support the Combined Company’s future clinical trials or commercialization. Moreover, the Combined Company will not be
able to give any assurance that it or the contract manufacturers or suppliers that the Combined Company selects will be able to
supply the Combined Company’s products in a timely or cost-effective manner or in accordance with applicable regulatory
requirements, the Combined Company’s specifications, or the Combined Company’s clinical development timelines. The
failure of the Combined Company or any of our third-party manufactures or suppliers to comply with regulatory requirements could
result in material manufacturing delays and product shortages, which could delay or otherwise negatively impact the Combined Company’s
clinical trials and product development plans.
market price of BioTime Common Shares may decline in the future as a result of the Merger.
market price of BioTime Common Shares may decline in the future as a result of the Merger for a number of reasons, including if
the integration of BioTime and Asterias is unsuccessful (including for the reasons set forth in the preceding risk factor) or
if BioTime fails to achieve the perceived benefits of the Merger, including financial results, as rapidly as or to the extent
anticipated by financial or industry analysts. These factors are, to some extent, beyond the control of BioTime.
undertaken during the pendency of the Merger to complete the Merger and the other transactions contemplated by the Merger Agreement
may divert management attention and resources.
the efforts and actions required of BioTime and Asterias in order to consummate the Merger and the other transactions contemplated
by the Merger Agreement are more difficult, costly or time consuming than expected, such efforts and actions could result in the
diversion of each company’s management’s attention and resources or the disruption or interruption of, or the loss
of momentum in, each company’s ongoing businesses, which could adversely affect the business and financial results of BioTime
or Asterias, as applicable.