AMARANTUS BIOSCIENCE HOLDINGS, INC. (OTCBB:AMBS) paid $2.3 million as final payment to Regenicin Inc (OTCMKTS:RGIN). The final payment closes the Asset Purchase Deal between Regenicin and Amarantus. As per the deal, Amarantus made the final payment to biotech firm in the amount of $2.3 million. A payment of $200,000 is made to a senior secured creditor of Regenicin. Moreover, the two companies along with Lonza Group, Ltd. and its entities have a signed settlement deals in the company’s lawsuit. Regenicin submitted a joint dismissal in respect of all claims, unknown or known, in the Lonza issue.
Regenicin is a biotech firm specializing in the commercialization and development of regenerative cell treatments to restore the health of damaged organs and tissues. Amarantus announced the completion of the deal with the final payments being made to Regenicin on February 25, 2015. The trademark ‘PermaDerm’ has been transferred, and all necessary formalities have been completed by both parties.
The deal value
The total value of the Asset Purchase deal is valued at $8.023 million. It comprised of $3.0 million in restricted stock, $3.075 million in cash and forgiveness and payments of notes and liabilities worth $1.948 million. Here, investors should note that Amarantus stock will be restricted from sale until May 7.
The management view
Regenicin stated that deal with Amarantus will provide the company with adequate funds to move ahead with product development activities of life-saving technology. The expectations are the proceeds would lead the company to the commencement of FDA-sanctioned clinical studies with its first cell treatment wound care product. Randall McCoy, the CEO of Regenicin, said that the company is excited to see the Asset Purchase deal completed. The company is now well positioned to establish its cell therapy treatment in the FDA approval pipeline. It has a track record introducing innovative biotech products and medical devices in the market.