NEW YORK (TheStreet) -- Shares of StemCells (STEM) were tumbling 30% to $1.82 in late afternoon trading on Wednesday as the Palo Alto, CA-based stem cell therapeutics company's CEO Ian Massey and CFO Gregory Schiffman are leaving the company.
Three members of the company's board are also resigning.
The announcement was included in a multi-page filing with the SEC on Monday where StemCells also announced its planned merger with the Israel-based private company Microbot Medical.
"None of the foregoing resignations were the result of any disagreement with the company on any matter," according to the filing.
StemCell's merger with Microbot initially sent shares soaring on Tuesday.
Massey and Schiffman both received one-time payments of $216,667 and $187,500, respectively, as part of their resignations.
Additionally, StemCells noted in a separate SEC filing that it would accept warrant exercises from shareholders to purchase common stock. StemCells priced the offering of its common stock at a reduced value of $1.10 per share.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate STEMCELLS INC as a Sell with a ratings score of E+. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: STEM