The Chinese investors who took control of a Rancho Cordova stem cell company over the summer have ousted the company’s chief executive and three board members, it was disclosed Thursday.
Robin Stracey was removed as chief executive of Cesca Therapeutics Inc. earlier this month, the company said in a filing with the Securities and Exchange Commission. Stracey and two other directors, Craig Moore and Mark Bagnall, were removed from the board. Stracey was paid $1.5 million by the company as a settlement, the company said.
Replacing Stracey as interim CEO is Chris Xu, who was identified in the SEC filing as chairman of Boyalife Investment Inc. and Boyalife (Hong Kong) Limited. The two Boyalife companies, based in China, took effective control of Cesca earlier this year after pumping in more than $15 million of critically needed cash. With subsequent investments, the Chinese companies now hold more than 50 percent of Cesca’s shares.
Cesca makes products and storage devices related to stem cell medicine.
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Also Thursday, the company announced a quarterly loss of $22.4 million, compared to a loss of $3.4 million the year before. Much of the loss was tied to a non-cash charge of $20.4 million. Revenue grew to $3.8 million from $2.8 million.