Amarantus
Enters into Definitive
Agreements for up to $1.5 Million
in Funding
- At least 96% of eligible securities
participating in Tender
Exchange
- CEO to present at BIOCOM Global Life Science Partnering
Conference in San Diego
San Francisco, CA -- February 26, 2018 -- InvestorsHub
NewsWire -- Amarantus
Bioscience
Holdings, Inc. (OTCPK:
AMBS) (the "Company"
or AMBS),
a
US-based biotechnology
holding
company
with
wholly-owned subsidiaries developing
first-in-class orphan
neurologic, regenerative medicine
and
ophthalmic therapies, today announced that it has
entered into definitive agreements to raise up to $1.5
million
in
funding from
an institutional investor in up to
5 tranches of $300,000 each. Dominick & Dickerman LLC
and Paulson Investment Company served as co-placement agents
on the transaction. Concurrent with this
announcement, the Company's CEO will be presenting an overview
of Elto
Pharma's pending Phase 2b Eltoprazine
program for Parkinson's disease levodopa-induced dyskinesia
(PD-LID) and
Cutanogen Corporation's pending pivotal trial in Pediatric Severe
Burns on Thursday March 1st, 2018 at 9:45pa ET at the BIOCOM Global Life Science
Partnering Conference in San Diego, CA.
Pursuant to the terms of the
agreement, the investor shall receive 300 shares of
12%
Series I
Convertible
Preferred Stock
(the "Preferred Stock"), with a stated
value
of
$1,000 per share,
for each $300,000 tranche of funding. Each share of Preferred Stock
is convertible into common stock at a fixed price of $0.07 per
share,
subject to adjustment. The Company may
repurchase all outstanding shares of Preferred
Stock at any time under the terms of the
agreement. In parallel, the Company announced that it
is opening the exchange period contemplated under
the agreements surrounding
the Forbearance and Capital
Restructuring Binding Letters of Intent
("LOIs") for the Tender Exchange the
Company entered into
in the fourth
quarter of 2017 with the holders of a
controlling majority of the Company Senior Secured Convertible Debt
and Convertible Preferred Stock. The exchange period is expected to
be completed
on or before March
17, 2018. Holders of 96% of securities eligible for the
Tender
Exchange have
executed the LOIs acknowledging their
participation in the Company's
recapitalization effort. Holders of the remaining
4% of
securities eligible for the Tender Exchange
are able
to
participate
until the
expiration of the exchange period.
Upon completion of the Tender
Exchange, the Company intends to utilize funding mechanisms created
under the JOBS Act to raise equity capital. The Company intends for its
subsidiaries to raise capital independently to advance
their
business
plans, thereby limiting
Amarantus' ongoing need to fund the
subsidiaries' product development programs, and limiting
future
dilution.
About Amarantus
Bioscience Holdings,
Inc.
Amarantus
Bioscience
Holdings (AMBS) is a biotechnology company developing treatments
and diagnostics for diseases in the areas of neurology,
regenerative medicine and orphan diseases through its
subsidiaries. AMBS' wholly-owned
subsidiary Elto Pharma, Inc. has development rights to
eltoprazine, a Phase 2b-ready small molecule indicated for
Parkinson's disease levodopa-induced dyskinesia,
Alzheimer's
aggression and adult attention deficit hyperactivity
disorder, commonly known as ADHD. AMBS acquired the rights to the
Engineered Skin Substitute program (ESS), a regenerative
medicine-based approach for treating severe burns with
full-thickness autologous skin grown
in tissue culture that is being pursued by AMBS'
wholly-owned subsidiary
Cutanogen Corporation. AMBS' wholly-owned subsidiary
MANF Therapeutics, Inc. owns key intellectual property
rights and
licenses from a number of prominent universities related to the
development of the therapeutic protein known as
mesencephalic astrocyte-derived neurotrophic factor
("MANF"). MANF
Therapeutics, Inc. is developing MANF-based
products as treatments for brain and ophthalmic
disorders.
MANF was discovered by the Company's Chief Scientific Officer John
Commissiong, PhD. Dr. Commissiong
discovered MANF from AMBS' proprietary discovery engine
PhenoGuard. AMBS also owns approximately
79.25
million shares of
Avant Diagnostics, Inc. via the sale of its wholly-owned subsidiary
Amarantus Diagnostics, Inc. that occurred in May
2016.
For further information please
visit www.Amarantus.com, or connect with
AMBS
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 and competition. These risks and
uncertainties should also be considered in evaluating
forward-looking statements and undue reliance should not be placed
on such statements.
Amarantus
Investor and Media Contact:
Ascendant Partners,
LLC
Richard Galterio
+1-732-410-9810
rich@ascendantpartnersllc.com
Source: Amarantus Bioscience
Holdings, Inc.