SAN FRANCISCO, April 21, 2016 /PRNewswire/ --
Amarantus BioScience Holdings, Inc. (OTCQX:AMBS), a biotechnology company developing products in Regenerative Medicine, Neurology and Orphan diseases, has entered into a Securities Purchase Agreement (the "SPA") with three existing institutional investors for the sale of an aggregate principal amount $1,500,000 (including 10% OID) 10% Senior Secured Convertible Promissory Notes due April 17, 2017 (the "Notes") and a warrant to purchase 1,350,000 shares of common stock (the "Warrant") in a private placement offering. Pursuant to the SPA, the investors agreed to purchase additional aggregate principal amount of $1,555,556 (including 10% OID) of Notes and Warrants to purchase 1,400,000 shares of common stock upon effectiveness of a registration statement (the "Registration Statement") registering the common stock underlying the Notes and Warrants or earlier as mutually agreed between the investors and the Company and an additional $1,388,889 (including 10% OID) of Notes and Warrants to purchase 1,250,000 shares of common stock on the 61st day after effectiveness of the Registration Statement or earlier as mutually agreed between the investors and the Company. The first funding tranche of $1.35M has been delivered to the Company, with the primary use of proceeds to finance the Company's development of the ESS program. The Company is required to file the Registration Statement by April 29th, 2016.
Chardan Capital Markets, LLC acted as sole placement agent for the transaction.
"We are in preparation mode for the initiation of the Phase 2 clinical study for ESS in collaboration with the US Army," said Gerald E. Commissiong, President & CEO of Amarantus. "This capital investment positions Amarantus to be operationally ready to open the clinical study shortly."
The Notes, Warrants and shares issuable upon conversion of the Notes and exercise of the Warrants have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any State or other jurisdiction, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
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, Regenerative Medicine and Orphan diseases. The Company has an exclusive worldwide license to intellectual property rights associated with Engineered Skin Substitute (ESS), an autologous full thickness skin replacement product in development for the treatment of adult severe burns, currently preparing to enter Phase 2 clinical studies. In parallel, the Company is evaluating human clinical data from previously conducted studies in pediatric severe burns and Congenital Giant Hairy Nevus to support clinical development expansion into those areas. ESS has achieved Orphan Drug Designation (ODD) in the area of severe burns, and is seeking ODD status for additional serious dermatologic indications. AMBS also has development rights to eltoprazine, a small molecule currently in clinical development for Parkinson's disease levodopa-induced dyskinesia, an orphan disorder, 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 technology platform that led to MANF's discovery (PhenoGuard™), and which can be used to identify novel neurotrophic factors.
AMBS' Diagnostics division owns the rights to MSPrecise®, a proprietary next-generation DNA sequencing-based test for identifying patients with relapsing-remitting multiple sclerosis at first clinical presentation, has an exclusive worldwide license to the Lymphocyte Proliferation test (LymPro Test®) for Alzheimer's disease, (developed by Prof. Thomas Arendt, Ph.D., from the University of Leipzig), and owns intellectual property for the diagnosis of Parkinson's disease (NuroPro).
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.
Amarantus Investor and Media Contact:
Ascendant Partners, LLC
SOURCE Amarantus BioScience Holdings, Inc.