Amarantus BioSciences Announces Close of $10M Equity Funding Facility With Centurion Private Equity, LLC
SUNNYVALE, CA--(Marketwire -10/13/11)- Amarantus BioSciences, Inc. (OTC.BB: AMBS.OB - News), a biotechnology company developing MANF, a first-in-class, disease-modifying therapeutic protein that addresses an underlying form of cell death known as apoptosis, announced today that it has closed a $10M Equity Funding Facility with Centurion Private Equity, LLC ("Centurion"). The Company will have the ability to draw down on this facility over the course of the next 36 months in tranches of up $750,000, subject to certain conditions and limitations described in the agreement, including limitations based upon the price and trading volume of the Company's common stock, upon the successful registration of the common shares underlying the facility with the Securities & Exchange Commission.
"This Equity Funding Facility provided by Centurion Private Equity is one of the most flexible financing tools available to public biotechnology companies seeking to raise capital," said Dr. Samuel Herschkowitz, special advisor to the Amarantus Board of Directors. "The strong commercial potential of the MANF platform for Parkinson's and other apoptosis-related disorders will require flexible financing tools as the Company lays out its corporate strategy for rapid product registration in the US and abroad. Centurion's financings will provide the Company with strategic capital to fund its development programs while maintaining working capital flexibility in various fundraising market conditions. We believe this facility will likely attract additional financing sources for the Company seeking to leverage the value of this facility."
"This commitment by Centurion Private Equity provides tremendous validation of the value proposition that Amarantus represents for public market healthcare investors," said Martin D. Cleary, Chairman & CEO of Amarantus. "The Company intends to strategically draw down on this facility in a manner that protects the best interests of our shareholders and use the proceeds for core product development, material transactions such as licensing, mergers, acquisition and other relevant value-added business development opportunities. We intend to seek to identify additional sources of capital to fund the Company's development programs in the near-term. This facility provides a compelling rationale to attract the interest of additional institutional investors seeking to mitigate financing risk."
"Centurion Private Equity is pleased to enter into this financing agreement with Amarantus," said Paul Gorski, Private Equity Manager at Centurion. "Centurion is pleased to partner with Amarantus to unlock the tremendous potential of the MANF platform."
MANF is a protein that corrects protein misfolding. Protein misfolding is one of the major causes of apoptosis (cell death). This property provides a compelling rationale for the research and development of MANF-based products as therapeutics for human disease. The lead MANF product development effort is centered on a therapy for Parkinson's disease, currently funded by a research grant from the Michael J. Fox Foundation for Parkinson's Research. The Company also owns an inventory of 88 cell lines referred to as "PhenoGuard Cell Lines." MANF was the first therapeutic protein discovered from a PhenoGuard Cell Line. It is anticipated that additional therapeutic proteins useful for various therapeutic approaches to the Central Nervous System will be identified from the Company's inventory of PhenoGuard Cell Lines.
About Amanrantus BioSciences, Inc.
Amarantus BioSciences, Inc. is a California-based development-stage biotechnology company founded in January 2008. The Company has a focus on developing certain biologics surrounding the intellectual property and proprietary technologies it owns to treat Parkinson's disease and other human diseases. The Company owns the intellectual property rights to a therapeutic protein known as Mesencephalic-Astrocyte-derived Neurotrophic Factor ("MANF"). For further information, please visit www.amarantus.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the possible benefits of MANF therapeutic applications and/or advantages presented by Amarantus' PhenoGuard technology, as well as statements about expectations, plans and prospects of the development of Amarantus' new product candidates. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including the risks that the anticipated benefits of the therapeutic drug candidates or discovery platforms, as well as the risks, uncertainties and assumptions relating to the development of Amarantus' new product candidates, including those identified under "Risk Factors" in Amarantus' most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q and in other filings Amarantus periodically makes with the SEC. Actual results may differ materially from those contemplated by these forward-looking statements. Amarantus does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this presentation.