Offering will include five-year warrants for 4 million common shares
By Devika Patel
Knoxville, Tenn., April 21 – Amarantus Bioscience Holdings, Inc. settled a $1.35 million private placement of $1.5 million original issue discount 12% senior secured convertible promissory notes with three investors on April 14, according to an 8-K filed Thursday with the Securities and Exchange Commission. The notes were sold with a 10% discount by agent Chardan Capital Markets, LLC.
The notes are due on April 17, 2017 and are convertible into common shares at a price equal to the lower of $0.40 and 75% of the lowest daily volume weighted average price of the stock during the 15 trading days preceding conversion. The convertibles may be prepaid at 120.
The investors also received warrants for 1.35 million shares. Each of the warrants is exercisable at $0.40 for five years. The strike price is a 400% premium to the April 13 closing share price of $0.08.
The investors agreed to an additional $1,555,556 of notes with warrants for 1.4 million shares in a second $1.4 million tranche and an additional $1,388,889 of notes with warrants for 1.25 million shares in a third $1.25 million tranche.
Proceeds will be used for development of the ESS product and working capital.
Amarantus is a biotechnology company based in San Francisco.
| Issuer: | Amarantus Bioscience Holdings, Inc.
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| Issue: | Original issue discount senior secured convertible promissory note
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| Amount: | $4,444,445
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| Maturity: | April 17, 2017
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| Coupon: | 12%
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| Price: | $4 million, 10% discount
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| Conversion price: | Lower of $0.40 and 75% of the lowest daily volume weighted average price of the stock during the 15 trading days preceding conversion
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| Call: | At 120
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| Warrants: | For 4 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.40
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| Agent: | Chardan Capital Markets, LLC
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| Settlement date: | April 14 ($1.5 million of notes for $1.35 million)
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| Stock symbol: | OTCBB: AMBS
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| Stock price: | $0.08 at close on April 13
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| Market capitalization: | $2.31 million
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