addition to the other information contained in or incorporated by reference into this joint proxy statement/prospectus, including
the matters addressed in the section entitled “Cautionary Statement Regarding Forward-Looking Statements,” BioTime
shareholders should carefully consider the following risks in deciding whether to vote for the approval of the BioTime proposals,
and Asterias stockholders should carefully consider the following risk factors in deciding whether to vote for the Asterias proposals.
In addition, shareholders of BioTime and stockholders of Asterias should read and consider the risks associated with each of the
businesses of BioTime and Asterias because these risks will relate to the Combined Company. Certain of these risks can be found
in BioTime’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2018, which is incorporated by reference
into this joint proxy statement/prospectus, and Asterias’ Quarterly Report on Form 10-Q for the fiscal quarter ended September
30, 2018, which is incorporated by reference into this joint proxy statement/prospectus. You should carefully read this entire
joint proxy statement/prospectus and its Annexes and the other documents incorporated by reference into this joint proxy statement/prospectus.
See the section entitled “Where You Can Find More Information.”
Related to the Merger
Exchange Ratio is fixed and will not be adjusted in the event of any change in the stock prices of either BioTime or Asterias.
closing of the Merger, each share of Asterias Common Stock will be converted into the right to receive 0.71 BioTime Common Shares
with cash paid in lieu of fractional shares. This Exchange Ratio is fixed in the Merger Agreement and will not be adjusted for
changes in the market price of either BioTime Common Shares or Asterias Common Stock. Because the Exchange Ratio is fixed, changes
in the price of BioTime Common Shares prior to the Merger will affect the value of the merger consideration that Asterias stockholders
will receive on the date of the Merger. In addition, BioTime will issue an amount of BioTime Common Shares in the Merger based
on the number of shares of Asterias Common Stock outstanding as of the effective time of the Merger, and the amount of BioTime
Common Shares issued in the Merger will not change based on the price of BioTime Common Shares or Asterias Common Stock as of
the date of the Merger or their relative price, or any changes in their price or relative price prior to the Merger.
price changes may result from a variety of factors (many of which are beyond our control), including the following:
in our respective businesses, operations and prospects;|
in market assessments of the business, operations, and prospects of either company;|
behavior and strategies, including market assessments of the likelihood that the Merger will be completed;|
rates, general market and economic conditions and other factors generally affecting the price of BioTime Common Shares and
Asterias Common Stock; and|
state, and local legislation, governmental regulation, and legal developments in the jurisdictions in which Asterias and BioTime
price of BioTime Common Shares at the closing of the Merger may vary from its price on the date the Merger Agreement was executed,
on the date of this joint proxy statement/prospectus, and/or on the dates of the special meetings of BioTime and Asterias. As
a result, the market value represented by the Exchange Ratio will also vary. For example, based on the range of closing prices
of BioTime Common Shares during the period from November 7, 2018, the last full trading day before BioTime’s public announcement
of its intent to acquire Asterias, through February 1, 2019, the latest practicable date before the date of this joint
proxy statement/prospectus, the Exchange Ratio represented a market value ranging from a low of $0.61 to a high of $1.49
for each share of Asterias Common Stock.