Amarantus Closes $5.5 Million Capital Infusion Through the Issuance of a Combination of Preferred Stock and Secured Debt Conv...
October 01 2015 - 7:32AM
Amarantus Bioscience Holdings, Inc. (OTCQX:AMBS), a biotechnology
company developing therapeutic and diagnostic product candidates
for orphan indications and neurology, announced that it has
completed the issuance of $2.75 million of newly designated Series
H convertible preferred stock in a registered direct offering and
$2.75 million in secured debt in a private placement for a total of
$5.5 million to a single institutional investor. Both the Series H
and the newly issued secured convertible debt are convertible into
Amarantus common stock at $2.50 per share, subject to adjustment
based on market conditions. In addition, $2.85 million in secured
debt previously issued to Dominion Capital in connection with the
acquisition of Cutanogen Corporation has been exchanged for the
secured notes issued in connection with the secured debt financing
agreement outlined above. In connection with this series of
transactions, the Company issued approximately 3.8 million warrants
to the Series H holders and secured debt holders exercisable for
five (5) years with a fixed strike price of $2.00.
At closing, the Company simultaneously repurchased all of the
remaining 1,260 outstanding Series G convertible shares, having a
face value of $6,300,000, and 212,087 common shares held by
Discover Growth Fund at closing, for a total of $4.75 million in
cash. With the completion of this series of transactions, Discover
Growth Fund no longer holds any securities of the Company and is
precluded from trading in the Company's securities for a period of
two (2) years.
"We are pleased to have completed this capital infusion to
enable the Company to simultaneously repurchase the Series G
preferred and remaining common stock held by Discover. We believe
this has removed a significant impediment to our ability to unlock
the true value of our rich pipeline in the financial markets," said
Robert E. Farrell, Chief Financial Officer at Amarantus. "While
adverse market conditions have persisted in the entire
biotechnology sector, we remain committed to our goal of achieving
a national exchange listing, and believe this transaction is a
significant step forward in positioning Amarantus toward reaching
that important objective. We continue our efforts to build value
for our shareholders while working closely with key 'up-listing'
advisors to pursue the best possible strategy toward reaching a
future national exchange listing in this challenging environment,
and will update shareholders accordingly."
Aegis Capital Corp. served as placement agent for the private
placement.
About Amarantus BioScience Holdings, Inc.
Amarantus BioScience Holdings (OTCQX:AMBS) is a biotechnology
company developing treatments and diagnostics for diseases in the
areas of neurology and orphan diseases. The Company has an
exclusive worldwide license to intellectual property rights
associated to Engineered Skin Substitute (ESS), an orphan drug
designated autologous full thickness skin replacement product in
development for the treatment of severe burns currently preparing
to enter Phase 2 clinical studies. AMBS also has development rights
to eltoprazine, a small molecule currently in a Phase 2b clinical
program for Parkinson's disease levodopa-induced dyskinesia with
the potential to expand into adult ADHD and Alzheimer's aggression.
AMBS owns the intellectual property rights to a therapeutic protein
known as mesencephalic-astrocyte-derived neurotrophic factor (MANF)
and is developing MANF as a treatment for orphan ophthalmic
disorders, initially in retinitis pigmentosa (RP) and retinal
artery occlusion (RAO). AMBS also owns the discovery of
neurotrophic factors (PhenoGuard™) that led to MANF's
discovery.
AMBS' Diagnostics division owns the rights to MSPrecise®, a
proprietary next-generation DNA sequencing (NGS) assay for the
identification of patients with relapsing-remitting multiple
sclerosis (RRMS) at first clinical presentation, has an exclusive
worldwide license to the Lymphocyte Proliferation test (LymPro
Test®) for Alzheimer's disease, which was developed by Prof. Thomas
Arendt, Ph.D., from the University of Leipzig, and owns
intellectual property for the diagnosis of Parkinson's disease
(NuroPro).
For further information please visit www.Amarantus.com, or
connect with the Company on Facebook, LinkedIn, Twitter and
Google+.
Forward-Looking Statements
Certain statements, other than purely historical information,
including estimates, projections, statements relating to our
business plans, objectives, and expected operating results, and the
assumptions upon which those statements are based, are
forward-looking statements. These forward-looking statements
generally are identified by the words "believes," "project,"
"expects," "anticipates," "estimates," "intends," "strategy,"
"plan," "may," "will," "would," "will be," "will continue," "will
likely result," and similar expressions. Forward-looking statements
are based on current expectations and assumptions that are subject
to risks and uncertainties which may cause actual results to differ
materially from the forward-looking statements. Our ability to
predict results or the actual effect of future plans or strategies
is inherently uncertain. Factors which could have a material
adverse effect on our operations and future prospects on a
consolidated basis include, but are not limited to: changes in
economic conditions, legislative/regulatory changes, availability
of capital, interest rates, competition, and generally accepted
accounting principles. These risks and uncertainties should also be
considered in evaluating forward-looking statements and undue
reliance should not be placed on such statements.
CONTACT: Investor and Media Contact:
Jenene Thomas
Jenene Thomas Communications, LLC
Investor Relations and Corporate Communications Advisor
T: (US) 908.938.1475
E: jenene@jenenethomascommunications.com
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