Amarantus Strengthens Balance Sheet With Preferred Stock Transaction
Conversion of Preferred Shares Subject to 6-Month Lock-Up Agreement
SUNNYVALE, Calif., Aug. 19, 2013 (GLOBE NEWSWIRE) -- Amarantus BioScience Holdings, Inc. (OTCQB:AMBS), a biotechnology company discovering and developing treatments and diagnostics for diseases associated with neurodegeneration and apoptosis, today announced the Company has entered into an equity financing arrangement with Dominion Capital to settle approximately $1,200,000 in accounts payable in exchange for Series D Preferred Shares of the Company. The transaction substantially reduces the Company's outstanding accounts payable balance, allowing the Company to use cash to fund ongoing operations, primarily product development activities.
"This transaction is critical for the long-term financial health of the Company," said Gerald E. Commissiong, President & CEO of Amarantus. "With our recently announced positive data for MANF in the Orphan Indication Retinitis Pigmentosa, as well as the continued development of our Alzheimer's diagnostic blood test LymPro which is expected to be commercialized in 2014, we believe this transaction positions the Company to unlock the substantial value inherent in our pipeline by improving our balance sheet, making the Company stronger."
Under the terms of the agreement, Dominion Capital has agreed to assume the payments of certain accounts payable valued at approximately $1,200,000. In consideration for making these payments, Dominion has received an aggregate of 1,300 shares of the Company's newly designated non-voting Series D Convertible Preferred Stock ("convertible preferred stock"), having a stated value of $1,000 per share. The convertible preferred stock has an effective conversion price into common stock of $0.03 per share, subject to adjustment under certain circumstances. The convertible preferred stock will accrue an 8% dividend. Dominion Capital has agreed to a 6 month 'lock-up' agreement, as well as 'no shorting' provisions.
"Amarantus has delivered on each of its stated milestones over the last several months," said Mikhail Gurevich, Managing Partner at Dominion Capital. "We believe this transaction will pave the way for the Company to access more substantial financing and we are very pleased to be able to assist the Company in reaching its full potential."
Amarantus is a 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 and/or diagnose Parkinson's disease, Alzheimer's disease, Traumatic Brain Injury, and other human diseases. The Company has an exclusive worldwide license to the Lymphocyte Proliferation test ("LymPro Test®) 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. The Company also 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+.
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