AMARANTUS BIOSCI INC (OTCMKTS:AMBS) updated about its asset purchase deal with biotech company Regenicin Inc (OTCMKTS:RGIN). The deal is now closed as the company made final payment amounting to $2.3 million. The seller company is a known name in the field of biotech with robust product pipeline in division of regenerative cell medications. The prime operations are into the development and commercialization of regenerative cell therapies. The company is working in a key segment as the treatments are directed to cure damaged tissues and organs.
The deal between Amarantus and Regenicin closed on February 25, 2015. All the payments have been made following which Amarantus now holds the trademark ‘PermaDerm.’ All legal formalities between the two involved companies have been met and agreement is closed. Under the closed transaction, the company paid $200,000 to a ‘senior’ secured creditor. The settlement also involved Lonza Group, Ltd. The seller firm confirmed joint dismissal to all claims in the Lonza issue.
The agreement between Amarantus and Regenicin was valued at $8.023 million in cash and stock. Amarantus paid restricted stock of worth $3.0 million and cash of $3.075 million to Regenicin. The payment covered ‘forgiveness’ and other payments of notes and liabilities valued at $1.948 million.
On the growth path
AMARANTUS BIOSCI INC (OTCMKTS:AMBS) considers the deal as an important step taken towards strengthening its position in the market. The company will be able to progress with its product development initiatives and other planned programs of life-saving technology. At the same time, the seller firm intends to use the funds generated from the deal to initiate the FDA-supported clinical studies of its first cell treatment wound care product. The management of Regenicin said they are pleased with the completion of deal with Amarantus as they can move forward with development of cell therapy treatment.