Amarantus BioSciences Secures $1.1 Million In Financing
SUNNYVALE, Calif., Nov. 14, 2012 /PRNewswire/ -- Amarantus BioSciences, Inc. (OTCQB: AMBS), a biotechnology company developing new treatments and diagnostics for Parkinson's disease and Traumatic Brain Injury centered on its proprietary anti-apoptosis therapeutic protein MANF, today announced it has secured over $1.1 million in funding through two separate transactions. Proceeds will be used to provide funding for the Company's lead asset, Mesencephalic-Astrocyte-derived Neurotrophic Factor ("MANF"), reconcile certain of Amarantus' outstanding payables, and for general working capital.
"Amarantus is at a pivotal stage in our corporate development, and these transactions provide us with capital to advance our research collaborations, continue our efforts to progress MANF into clinical trials, as well as strengthen the Company's balance sheet, making the Company more attractive to the investment community," said Gerald E. Commissiong, President and CEO of Amarantus. "Interim data for MANF showed promising results in behavioural animal models of Parkinson's disease, and we expect final data to be available in December. With this financing, the Company can make more substantial progress with our product candidates, allowing management to market the MANF opportunity to potential partners as well as look at creative financing structures to ensure MANF and NuroPro's further development. We remain focused on moving our Parkinson's assets towards clinical trials to explore the potential benefits for patients, and we will also begin to explore additional applications for the MANF technology which may address larger markets, and/or address smaller orphan drug markets that have more rapid paths to commercialization."
Amarantus issued a Convertible Promissory Note to an undisclosed institutional investor (the "Investor") in the principal amount of $600,000. The Note bears interest at the rate of ten percent (10%) per annum until paid in full and can convert into shares of the Company's common stock at a price of $0.10 per share, subject to certain provisions. The note is not convertible into common shares for 6 months, and the Company has the option to pay the note in cash at its discretion at any time. Monies will be paid to Amarantus under the note in four separate tranches of $150,000 over a 6 week period, subject to certain milestones. The Investor agreed to "no shorting" provisions.
Amarantus entered into an unrelated equity financing arrangement with a separate long-only institutional fund (the "Fund") that assists public companies in financing operations and expansion. The Company settled over $500,000 in accounts payable, which the fund had acquired from various creditors of the Company, in exchange for shares of common stock. The transaction substantially reduced the Company's liabilities, including a portion of its outstanding accounts payable balance. The Fund agreed to "no shorting" provisions.About Amarantus BioSciences, Inc. Amarantus BioSciences, Inc. 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, Traumatic Brain Injury and other human diseases. The Company 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. 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. This press release does not represent an offer to buy or sell securities.
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