JLABS-alumnus biotechnology holding company developing orphan neurologic, regenerative medicine and ophthalmic therapies, Amarantus Bioscience Holdings (OTCMKTS:AMBS), on April 27, 2022, released letter to the shareholders announcing foray into non-binding term sheet for selling its Engineered Skin Substitute subsidiary, Cutanogen Corporation. Furthermore, the firm’s Acting CEO Donald Huffman, gave an update for shareholders about the future direction.
On Wednesday, AMBS stock moved up 3.73% to $0.0050 with more than 5.02 million shares, compared to its average volume of 1.03 million shares. The stock moved within a range of $0.0044 – 0.0068 after opening trade at $0.0050.
Amarantus Signs Non-Binding Term Sheet to Divest Cutanogen Corporation in Exchange for the Extinguishment of Potential $21M+ in Liabilities
As per the Non-Binding Termsheet, the Cutanogen purchasers are group of holders of its senior secured and unsecured notes. Some other note holders aren’t a part of the Group may also look at participating with the Group. The Noteholders will relieve the firm of $21.5 million and $25.3 million of secured and unsecured debt and payables obligations.
The second part will entail Group’s formation of a joint venture with Contract Research Organization’s venture capital arm for managing and financing further clinical development. The company will share in future returns of joint venture post receiving a threshold amount.
Board Member/Acting CEO Donald Huffman said that he was pleased on providing update on a number of fronts. The CEO added that there are plans to deliver a recapitalization of the firm enabling shareholders benefit from the value of Amarantus’ compelling portfolio.
Huffman further stated that the goal is to put the development programs into separate subsidiary companies, and work with partners for attracting financial resources to advance these programs through FDA approval.
AMBS stock is trading below the 20-Day and 50-Day Moving averages of $0.0059 and $0.0074 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0086.