AMARANTUS BIOSCI INC (OTCMKTS:AMBS) recently announced a 1-for-150 reverse split of AMBS common stock. The decision was taken so as to meet the necessary price requirement for an up listing on the NASDAQ exchange. The company plans to release an Initial Public Offering to list on NASDAQ in 3Q2015. The management is making substantial advancements with their plans to either separate or sell out company’s diagnostic segment. The move is considered as beneficial for shareholders. Moreover, the company reported that it is set to start its eltoprazine Phase II b study in next few weeks.
On May 20, 2015 Amarantus Bioscience reported financial results for 1Q2015. The company generated zero revenues in the quarter. The operating loss stood at $6.5 million, driven by $4.1 million in General & Administrative costs and $2.5 million in R&D expenses. Net loss came at $0.01 per share while the cash reserves at the end of first quarter came at merely $0.1 million. The company reported $8.7 million as cash utilization from operating and investing activities in the first quarter.
The cash utilization
Amarantus spent significant cash while completing deals to expand its diagnostic as well as therapeutic product pipelines. It acquired DioGenix, Inc. in January for 99.4 million shares of common stock and $0.9 million in cash. It paid $2.0 million in form of potential milestones connected with results of clinical assessment and projected future revenue from drugs under development process.
With acquisition of DioGenix, the company acquired control of MSPrecise® which is a unique DNA test to diagnose patients witnessing RRMS. In January 2015, Amarantus paid $0.075 million to Georgetown University so as to license the patent rights pertaining to certain blood-based biomarkers. The company is taking calculated measures to get up listed on NASDAQ platform.
In last trading session, the share price of AMBS declined more than 2% to close the trading session at $0.0502.