Transformational Funding Positions Amarantus Heading into 2014 Milestones

“Courage and perseverance have a magical talisman, before which difficulties disappear and obstacles vanish into air.”

– John Quincy Adams

In my last blog I wrote about the need to stand firm in the face of adversity if one’s purpose is greater than the challenge being faced. Generally speaking, it is my view in life that nothing that is worth doing will be easy, and believing in one’s self and one’s strategy is the ONLY way to overcome adversity. This certainly applies to Amarantus’ current situation and, with today’s series of financial transactions, we have overcome THE major hurdle impeding the unlocking of our true value for our loyal shareholders. We raised $4M in cash by issuing 45M warrants priced at $0.12 and 4M common shares priced at $0.10. As they say, money talks and so as we continue ongoing discussions with various groups with interest in the Company’s product line, we now have the most important tool in any negotiation: the ability to say ‘no.’ This power gives the team at Amarantus financial credibility in the biotech space where credibility is everything and the potential returns for good deals vs. bad deals can swing dramatically.

Dilution is certainly a key concern of mine being the co-founder and a large shareholder along with my co-founder and father Dr. John Commissiong, as is the perception that the Company will continue to dilute itself at low price levels all the while impeding the natural progression of our trading market; this was the exact reason why we structured the transactions as we did:

  1. We now have cash on hand to fully operate into the fourth quarter of 2014, and potentially into 2015 if certain of our pending and in process grant applications is awarded;
  2. Between today and the next time the Company would need cash, we have a number of fundamental value-building milestones that we believe will shift the investment thesis underpinning Amarantus, thereby allowing these milestones to get priced into the market ahead of drawing down on additional capital;
  3. A key issue in gaining access to grant funding has been the lack of financial stability of the Company and the fear from granting agencies that if strict timelines were not met, the Company would not be able to sustain the project – this concern now no longer exists as the Company will be able to supplement grant funding with company funding as necessary;
  4. We are aware that it is possible in the biotechnology industry to gain strong financial terms from potential partners eager to gain access to the Company’s technology – we can now aggressively pursue this strategy without the risk of a significant dilutive financing throughout that process;
  5. We will now begin contemplating shareholder value-building strategic decisions regarding certain key assets, and the best way to monetize the work we are doing, while keeping a view on long-term value creation via our holding company business strategy;
  6. We can now enter into discussions with national exchanges regarding the most appropriate time to list on said exchanges and get them competing for our business.

It has been a long road for our loyal shareholder base, and we certainly respect and appreciate all the effort you have put into building Amarantus into the company it is today. As we move from today into tomorrow, we believe we are very well positioned to gain the attention of larger institutional investors seeking to gain access to the Company’s pipeline and potential for the future while significantly reducing the financial risk typically associated with Over-The-Counter stocks. It is important to note, the Company will not contemplate a reverse split at current price levels thereby mitigating that risk in the near-term.

I thank you for taking the time to read this blog and look forward to communicating with you in the near future both electronically and, at some point in 2014, at a shareholder meeting.

 

Warm Regards,

Gerald E. Commissiong

President & CEO

 

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Mr. Commissiong was appointed President and CEO of Amarantus BioScience in October 2011.

Company Information

Company Website: http://www.amarantus.com/
Company Headquarters

c/o Janssen Labs @ QB3
953 Indiana Street
San Francisco, CA 94107
Phone: (408) 737-2734
Fax: (408) 852-4427
info@amarantus.com

Media and Investor Relations Contact

Aimee Boutcher, Director of Investor Relations
Phone: (408) 737-2734 x 101
ir@amarantus.com

Forward Looking Statements

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.

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