Amarantus receives $1.1 million investment
“Amarantus is at a pivotal stage in our corporate development, and these transactions provide us with the 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 has roughly a year’s worth of funding at our current burn rate giving us the time to diligently 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.”
Commissiong and Dr. John Commissiong, Chief Scientific Officer, are among the 13th annual 50 Most Important African-Americans in Technology. Selectees gather Jan. 15, 2013 at B. Smith Union Station in Washington, D.C. for Innovation & Equity 2013: Keeping America First in Technology: Public Innovation & Supplier Diversity. Among the topics will be the First in Venture Capital and Private Equity Salon, led by Vernon Lee Jr., managing partner of Brightwood Management Partners and director of the Venture Capital Access Program for the National Association of Investment Companies. On the agenda is the creation of a Manufacturing Research and Technology Alliance to support such cutting edge ventures with global markets.
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 met by the Company. 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 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. Fund investor 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.
