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Amarantus Closes $5.5 Million Capital Infusion Through the Issuance of a Combination of Preferred Stock and Secured Debt Convertible
Amarantus Closes $5.5 Million Capital Infusion Through the Issuance of a Combination of Preferred Stock and Secured Debt Convertible.
About this update from Amarantus Bioscience Holdings, Inc.
[{"type":"text","content":"\nSAN FRANCISCO and GENEVA, Oct. 1, 2015 (GLOBE NEWSWIRE) -- Amarantus Bioscience Holdings, Inc. (OTCQX:AMBS), a biotechnology company developing therapeutic and diagnostic product candidates for orphan indications and neurology, announced that it has completed the issuance of $2.75 million of newly designated Series H convertible preferred stock in a registered direct offering and $2.75 million in secured debt in a private placement for a total of $5.5 million to a single institutional investor. Both the Series H and the newly issued secured convertible debt are convertible into Amarantus common stock at $2.50 per share, subject to adjustment based on market conditions. In addition, $2.85 million in secured debt previously issued to Dominion Capital in connection with the acquisition of Cutanogen Corporation has been exchanged for the secured notes issued in connection with the secured debt financing agreement outlined above. In connection with this series of transactions, the Company issued approximately 3.8 million warrants to the Series H holders and secured debt holders exercisable for five (5) years with a fixed strike price of $2.00.\n\n\tAt closing, the Company simultaneously repurchased all of the remaining 1,260 outstanding Series G convertible shares, having a face value of $6,300,000, and 212,087 common shares held by Discover Growth Fund at closing, for a total of $4.75 million in cash. With the completion of this series of transactions, Discover Growth Fund no longer holds any securities of the Company and is precluded from trading in the Company's securities for a period of two (2) years.\n\n\t\"We are pleased to have completed this capital infusion to enable the Company to simultaneously repurchase the Series G preferred and remaining common stock held by Discover. We believe this has removed a significant impediment to our ability to unlock the true value of our rich pipeline in the financial markets,\" said Robert E. Farrell, Chief Financial Officer at Amarantus. \"While adverse market conditions have persisted in the entire biotechnology sector, we remain committed to our goal of achieving a national exchange listing, and believe this transaction is a significant step forward in positioning Amarantus toward reaching that important objective. We continue our efforts to build value for our shareholders while wor...