Amarantus Provides Update on Restructuring Efforts and Letter of Intent with SeD Biomedical, Inc.
SAN FRANCISCO, April 5, 2017 /PRNewswire/ --
On February 27, 2017, Amarantus BioScience Holdings, Inc. (OTCPK: AMBS) ("Amarantus"), a US-headquartered biotechnology company focused on developing products for Regenerative Medicine, Neurology and Orphan Diseases, announced it had entered into a non-binding Letter of Intent ("LOI") with SeD Biomedical, Inc. ("SeD Biomedical"), a Singapore-based subsidiary of Singapore eDevelopment Limited (SGX:40V)("SeD"), that is focused in the area of biomedical product development, where Amarantus may acquire up to four of SeD Biomedical's biotechnology platforms. SeD Biomedical and SeD are under the control of SeD's CEO and largest shareholder Mr. Chan Heng Fai. The LOI came as part of Amarantus' overall restructuring plan initiated in November of 2016. Dominick & Dickerman, a New York-based investment banking and advisory firm founded in 1870, is serving as financial advisor to Amarantus for the restructuring and potential asset acquisitions.
The LOI was intended to be a basis for further negotiations and did not constitute a legally binding obligation.
On March 6, 2017, Mr. Chan, acting through a wholly owned entity, acquired shares of Amarantus' Series F Preferred Stock representing a controlling interest in Amarantus.
The following is an update regarding the LOI, the restructuring and the management of Amarantus.
THE RESTRUCTURING OF AMARANTUS
In connection with the LOI, SeD Biomedical was entitled to appoint four new directors to the Board of Directors of Amarantus (the "Board"). These new directors, who commenced their service as members of the Board on February 23, 2017, have a strong track record of restructuring distressed companies, and plan on working with Amarantus' management to attempt to build new value for Amarantus' shareholders. The Board is presently working with management to evaluate the operations and financial structure of Amarantus, with a goal of restructuring Amarantus. The Board is also evaluating Amarantus' intellectual property, with a goal of determining strategic priorities, including which of Amarantus' intellectual property may be maintained for future projects, and which may be sold, cancelled or spun off into new entities. Upon the completion of the Board's review and formulation of a plan, the Board shall task management with engaging in discussions with creditors regarding the implementation of such plan for debt restructuring and potential reorganization.
UPDATE REGARDING THE LETTER OF INTENT
Following SeD Biomedical's preliminary due diligence, SeD Biomedical has informed Amarantus' management of strategic measures that must be met by creditors and certain other parties as a condition for any investment, loan or asset injection by SeD Biomedical.
Neither SeD Biomedical, Amarantus, nor any individuals or entities affiliated with SeD Biomedical and Amarantus (including the management, directors and shareholders of SeD Biomedical and Amarantus) is able to guarantee Amarantus' management's ability to successfully negotiate with creditors or other parties, raise funds or successfully implement a new strategic direction for Amarantus. In the event that creditors and certain other parties decline to participate in the planned restructuring of liabilities to be developed by Amarantus' management under the supervision of the Board, and to execute such releases as may be required in connection with such restructuring, SeD Biomedical reserves the right to terminate the LOI.
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.