AMARANTUS BIOSCI INC (OTCMKTS:AMBS) recently confirmed a 1-for-150 reverse split of its common stock in order to support an up listing to the NASDAQ platform. It intends to bring an Initial Public Offering and list on the reputed exchange in the third quarter 2015. The management is making progress with plans to either spin out or sell out the diagnostic segment. If the company succeeds, it can create value for shareholders. In addition, the eltoprazine Phase II b study is planned to start in the next few weeks.
On May 20, Amarantus Bioscience released financial results for 1Q2015. The company generated zero revenues in the first quarter of the year. The operating loss came at $6.5 million, led by $4.1 million in General & Administrative expenses and $2.5 million in R&D. Net loss stood at $0.01 per share. The cash balance at the end of first quarter was merely $0.1 million. Cash utilization from investing and operating activities in the quarter came at $8.7 million.
Amarantus utilized significant cash completing numerous deals to expand its diagnostic and therapeutic product pipelines. It bought DioGenix, Inc. in January by paying 99.4 million shares of common stock worth $8.1 million and $0.9 million in cash. Also it paid $2.0 million in potential milestones linked with results of clinical evaluation and future revenue from candidates under development process.
With acquisition of DioGenix, Amarantus got control of MSPrecise® which is a DNA test used to diagnose patients with RRMS at first clinical presentation. In January 2015, the company also paid $0.075 million to Georgetown University to license the patent rights associated with certain blood-based biomarkers.
In last trading session, the stock price of Amarantus consolidated and closed flat at $0.0515. The share volume was 1.79 million compared to average share volume of 5.2 million.