Amarantus Closes Warrant Solicitation; Enters Into $20 Million Purchase Agreement With Lincoln Park Capital Fund, LLC
March 10 2014 - 6:00AM
Amarantus Bioscience Holdings, Inc. (OTC:AMBS) (Amarantus or the
Company), a biotechnology company focused on the discovery and
development of novel diagnostics and therapeutics related to
endoplasmic reticulum stress, cell cycle dysregulation,
neurodegeneration and apoptosis, announced today that it has closed
on its previously announced Warrant Solicitation, which the Company
elected to increase in size from $3.0M to $3.6M due to
oversubscriptions. Concurrently, the Company entered into a
purchase agreement with Lincoln Park Capital Fund, LLC ("LPC"), a
Chicago-based institutional investor. LPC initially purchased 4.0
million shares of Amarantus' common stock at $0.10 per share for
$400,000 and has committed to invest, at the sole option of
Amarantus, up to an additional $19.6M of equity capital over the
term of the purchase agreement. The total gross proceeds to the
Company from these two transactions upon closing is $4M.
"The capital raised through our Warrant Solicitation and the
access to capital from LPC increases our flexibility to achieve a
number of key milestones for the Company, including commercializing
our LymPro Blood Test for Alzheimer's disease, advancing the
clinical testing of Eltoprazine into late-stage development and
filing one or more INDs for MANF in orphan indications," said
Gerald E. Commissiong, President & CEO of Amarantus. "Going
forward, the Company can focus on executing its clinical
development plan, commercialization strategy and intellectual
property aggregation strategy, while maintaining a strong
negotiating position with potential partners due to the improved
access to capital this agreement provides."
During the 30-month term of the purchase agreement the Company,
at its sole discretion, has the right to sell to LPC up to an
additional $19.6 million of its common stock, in amounts as
described in the agreement and subject to certain conditions, which
include the effectiveness of a registration statement with the U.S.
Securities and Exchange Commission (SEC) covering the sale of the
shares that may be issued to LPC. The Company controls the
timing and amount of any future investment and LPC is obligated to
make purchases, if and when the Company decides in accordance with
the agreement.
There are no upper limits to the price LPC may pay to purchase
Amarantus common stock and the purchase price of the shares related
to any future investments will be based on the prevailing market
prices of the Company's shares immediately preceding the notice of
sale to LPC. LPC has agreed not to cause or engage in any
manner whatsoever, any direct or indirect short selling or hedging
of the Company's shares of common stock. In consideration for
entering into the agreement and the initial investment, the Company
has issued shares of common stock to LPC as a commitment
fee. The agreement may be terminated by the Company at any
time, at its sole discretion, without any monetary cost. The
proceeds from this investment will be used for product development,
commercialization and general corporate purposes.
A more detailed description of the agreement is set forth in the
Company's Current Report on Form 8-K recently filed with the SEC
which the Company encourages be reviewed carefully.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the securities in this offering,
nor will there be any sale of these securities in any jurisdiction
in which such offer solicitation or sale are unlawful prior to
registration or qualification under securities laws of any such
jurisdiction.
About Amarantus
Amarantus is a biotechnology company developing treatments and
diagnostics for diseases associated with neurodegeneration and
protein misfolding-related apoptosis. The Company has licensed
Eltoprazine ("Eltoprazine"), a phase 2b ready indication for
Parkinson's Levodopa induced dyskinesia and Adult ADHD. The Company
has an exclusive worldwide license to the Lymphocyte Proliferation
test ("LymPro Test(R)") for Alzheimer's disease and owns the
intellectual property rights to a therapeutic protein known as
Mesencephalic-Astrocyte-derived Neurotrophic Factor ("MANF") and is
developing MANF-based products as treatments for brain disorders.
Amarantus is a Founding Member of the Coalition for Concussion
Treatment (#C4CT), a movement initiated in collaboration with
Brewer Sports International seeking to raise awareness of new
treatments in development for concussions and nervous-system
disorders. The Company also owns intellectual property for the
diagnosis of Parkinson's disease ("NuroPro") and the discovery of
neurotrophic factors ("PhenoGuard"). For further information please
visit www.Amarantus.com, or connect with the Company on Facebook,
LinkedIn, Twitter and Google+.
About Lincoln Park Capital ("LPC")
LPC is an institutional investor headquartered in Chicago,
Illinois. LPC's experienced professionals manage a
portfolio of investments in public and private entities. These
investments are in a wide range of companies and industries
emphasizing life sciences, specialty financing, energy and
technology. LPC's investments range from multiyear financial
commitments to fund growth to special situation financings to
long-term strategic capital offering companies certainty,
flexibility and consistency. For more information, visit
www.lpcfunds.com.
CONTACT: Investor/Media Contacts
Aimee Boutcher, Director of Investor Relations
Amarantus Bioscience Holdings, Inc.
408-737-2734 x 101
ir@amarantus.com
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