Convertible securities holders grant 45-day extension to complete Tender Exchange
Elto Pharma recruiting seasoned management to lead "Go-Public" transaction
Management attending RESI JPM 2018 on Tuesday, January 9, 2018
SAN FRANCISCO, Jan. 09, 2018 (GLOBE NEWSWIRE) -- Via OTC PR Wire -- Amarantus Bioscience Holdings, Inc. (USOTCPK:AMBS), a US-based biotechnology holding company with wholly-owned subsidiaries developing first-in-class orphan neurologic, regenerative medicine and ophthalmic therapies, today announced that a controlling majority of its secured creditors and convertible preferred securities holders have agreed to a 45-day extension to complete the Tender Exchange of convertible securities under the Forbearance and Capital Restructuring Agreements initially disclosed by the Company on November 17, 2017. Under the terms of the extension, Amarantus now has until February 24th, 2018 to complete the Tender Exchange. The moratorium on conversions of securities into common stock remains in place until that date.
Based upon discussions Amarantus' management and board have engaged in since the initial public disclosure of the pending Tender Exchange, Amarantus believes that its wholly-owned subsidiary Elto Pharma, Inc. is well positioned to source independent financing to complete the proposed Phase 2b clinical study of Eltoprazine for the treatment of Parkinson's disease levodopa-induced dyskinesia (PD-LID). Given the valuations attributed to initial public offerings (IPOs) for companies with assets comparable to Elto Pharma, the Company has initiated the recruiting process for new management to lead the Elto Pharma subsidiary through a Go-Public transaction to raise sufficient capital to complete the next phase of clinical development for Eltoprazine in PD-LID. Eltoprazine has successfully completed initial Phase 2 studies in PD-LID, Agitation in Alzheimer's disease, and Adult ADHD. The Company and each of its subsidiaries are now eligible to use funding mechanisms created under the JOBS Act to achieve their strategic funding objectives.
The successful sourcing of independent funding for Elto Pharma will provide a framework for the sourcing of independent financing for Amarantus' other wholly-owned subsidiaries Cutanogen Corporation and MANF Therapeutics, Inc. As a result, the Company is also beginning the recruitment process for management teams for each of these subsidiaries. The independent sourcing of capital for each of Amarantus' subsidiaries will dramatically reduce the Company's need for ongoing funding, thereby limiting further dilution at the parent-company level.
Amarantus will be participating in Redefining Early Stage Investments (RESI) JPM 2018 on Tuesday January 9, 2018 at the Marines' Memorial Club & Hotel in San Francisco, CA.
About Elto Pharma, Inc.
In April 2017, Amarantus incorporated the wholly-owned subsidiary Elto Pharma, Inc. to focus on the clinical development of Eltoprazine. Eltoprazine is a small molecule 5HT1A/1B partial agonist in clinical development for the treatment of Parkinson's disease levodopa-induced dyskinesia (PD-LID), Alzheimer's aggression and adult attention deficit hyperactivity disorder (adult ADHD). Eltoprazine has been evaluated in over 680 human subjects to date, and has a well-established safety profile, with statistically significant efficacy results across multiple central nervous system indications.
Eltoprazine was originally developed by Abbott Pharmaceuticals in aggression-related indications. The eltoprazine program was out-licensed to PsychoGenics, Inc. (PGI). PGI licensed eltoprazine to Amarantus in 2014 after a successful proof-of-concept trial in PD-LID.
About Cutanogen Corporation
In July 2015, Amarantus' acquired Lonza Walkersville's wholly-owned subsidiary Cutanogen Corporation, the sole licensor of intellectual property rights to ESS from Cincinnati's Shriner's Hospital for Children and the University of Cincinnati. Cutanogen Corporation is a wholly-owned subsidiary of Amarantus.
Engineered Skin Substitute (ESS) is a tissue-engineered skin prepared from autologous (patient's own) skin cells. It is a combination of cultured epithelium and a collagen-dermal fibroblast implant that produces a skin substitute which contains both epidermal and dermal components. This model has been shown in preclinical studies to generate a functional skin barrier. Most importantly, because ESS is composed of a patient's own cells, it is less likely to be rejected by the immune system of the patient, unlike with porcine or cadaver grafts in which immune system rejection is a possibility. A non-GMP version ESS has been used in investigator-initiated and compassionate-use clinical settings in over 150 human subjects, primarily pediatric patients, for the treatment of severe burns up to 95% of total body surface area. The non-GMP version has also been used in the treatment of two patients with Giant Congenital Melanocytic Nevi (GCMN).
About MANF Therapeutics, Inc.
In April 2017, Amarantus incorporated the wholly-owned subsidiary MANF Therapeutics, Inc. to focus on the preclinical and clinical development of MANF. MANF (mesencephalic-astrocyte-derived neurotrophic factor) is believed to have broad potential because it is a naturally-occurring protein produced by the body to reduce/prevent apoptosis (cell death) in response to injury or disease, via the unfolded protein response. By administering exogenously produced MANF the body, Amarantus is seeking to use a regenerative medicine approach to assist the body with higher quantities of MANF when needed. Amarantus is the front-runner and primary holder of intellectual property around MANF, and is initially focusing on the development of MANF-based protein therapeutics.
MANF's lead indications are retinitis pigmentosa and Glaucoma. Additional indications including Parkinson's disease, diabetes and Wolfram's syndrome are envisioned. Further applications for MANF may include Alzheimer's disease, traumatic brain injury, myocardial infarction, antibiotic-induced ototoxicity and certain other orphan diseases.
About Amarantus Bioscience Holdings, Inc.
Amarantus Bioscience Holdings (AMBS) is a biotechnology company developing treatments and diagnostics for diseases in the areas of neurology, regenerative medicine and orphan diseases through its subsidiaries. AMBS' wholly-owned subsidiary Elto Pharma, Inc. has development rights to eltoprazine, a Phase 2b-ready small molecule indicated for Parkinson's disease levodopa-induced dyskinesia, Alzheimer's aggression and adult ADHD. AMBS acquired the rights to the Engineered Skin Substitute program (ESS), a regenerative medicine-based approach for treating severe burns with full-thickness autologous skin grown in tissue culture that is being pursued by AMBS' wholly-owned subsidiary Cutanogen Corporation. AMBS' wholly-owned subsidiary MANF Therapeutics, Inc. owns key intellectual property rights and licenses from a number of prominent universities related to the development of the therapeutic protein known as mesencephalic astrocyte-derived neurotrophic factor (MANF). MANF Therapeutics, Inc. is developing MANF-based products as treatments for brain and ophthalmic disorders. MANF was discovered by the Company's Chief Scientific Officer John Commissiong, PhD. Dr. Commissiong discovered MANF from AMBS' proprietary discovery engine PhenoGuard. AMBS also owns approximately 80 million shares of Avant Diagnostics, Inc. via the sale of its wholly-owned subsidiary Amarantus Diagnostics, Inc. that occurred in May 2016.
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.
Source:Amarantus Bioscience Holdings, Inc.