Per the latest Zacks Small cap research report issued on Sep. 2nd (the Uplisting response is due back by the end of Q3). Also, the ESS trial start up was targeted for the end of Q3 as well. Its either going to a party and time for celebration (or perhaps the stock has plummeted due to the fact that it wont happen anytime soon). An interesting week ahead of those catalysts (and what news is announced).
To complete the uplisting to the NASDAQ, Amarantus will offer shares via an initial public offering (IPO). This will
both secure significant funding for the company and bring in quality institutional investors interested in taking a longterm
position in the stock. Earlier in May 2015, the company filed a Form S-3 allowing the company to raise gross
proceeds up to $150 million. We do not believe the plan is to raise anywhere near this level. In fact, we suspect the
IPO will raise in the area of $20 million, which based on the company s estimated $1.5 to $2.0 million per month
burn rate, should sustain operations for at least one year. Once listed on the NASDAQ, we assume the basic share
count will be around 12 million shares, with a fully-diluted count of approximately 15 million.
Another important reason why Amarantus seeks an uplisting to the NASDAQ is because the company is planning to
begin the process of selling or spinning-off Amarantus Diagnostics (AMDX). In fact, management has retained a
CEO search firm to find the right candidate to head up the division. Given the recent transaction to acquire
DioGenix, and with it MSPrecise®, along with the option agreement entered into with Georgetown University, it is
clear that building a self-sustained CNS-focused diagnostic division is among the top priorities for management.
The benefit of being listed on the NASDAQ prior to the deal is that should Amarantus chose to spin-off AMDX, it
would likely remain also listed on the NASDAQ assuming it met listing requirements. This has the added benefit of
allowing AMDX to raise capital and attract quality investors or offers once independently owned.
Zacks Investment Research Page 7 scr.zacks.com
We expect the NASDAQ uplisting to complete in the third quarter 2015. This upgrade will significantly increase the
Company s visibility and attract institutional investors, therefore increase the liquidity of the Company s shares.
