AMARANTUS BIOSCIENCE HOLDINGS, INC. (OTCMKTS:AMBS) is the subject of renewed investors’ interest after exploding by more than 200% in less than a month. The move higher is an extension of a powerful momentum triggered by a string of positive news. Shares of the company have been rising on heavy volume, from the $0.02 a share level to 20 months high.Stock Performance The powerful momentum saw the stock touch record highs of $0.21 before pulling back to the $0.08 handle. The 50% pullback came as a surprise given that the stock has been trading in an uptrend for the better part of the month.Given the fundamentals driving the upward momentum, the pullback could be a minor correction pending a move higher. The stock faces immediate support at the $0.07 handle, below which it could drop to the $0.04 mark. On the upside, the stock needs to close above the $0.12 handle to make a push for its 52-week high of $0.21. AMBS Daily ChartBefore we look at the primary catalysts which are likely to push the stock higher, let us look at what Amarantus Biosciences Holdings does.Amarantus Biosciences Holdings Business Overview Amarantus Biosciences is a biotechnology company focused on the development of treatments for orphan disorders in areas of neurology, regenerative medicine, and ophthalmology. The company has three main operating divisions’ diagnostics, therapeutics, and discovery division.The biotechnology company owns licenses to several product candidates in the therapeutic and diagnostic sectors. Through its wholly-owned subsidiary, Cutanogen Corporation it is developing a regenerative medicine cell therapy based autologous skin replacement product.Elto Pharma its other subsidiary has development rights for eltoprazine, a phase 2b ready small molecule, for the treatment of Parkinson’s disease, Levodopa-induced dyskinesia.Stock Catalyst Amarantus Biosciences Holdings has been spiking higher after reporting positive clinical trials data. Developments on the strengthening of the company’s Intellectual Property Portfolio has also had an impact on investors’ sentiments on the company’s growth prospects.The company’s wholly-owned subsidiary, MANF Therapeutics, has received a notice of Allowance from the U.S Patent & Trademark Office. The notice is for the use of mesencephalic astrocyte-derived neurotrophic factor (MANF) for the treatment of beta disorders including Type 1 and Type 2 Diabetes.Clinical trial results indicate that MANF can be relied upon, to protect and restore pancreatic beta cells in vitro and vivo, in animal models of diabetes. There is growing belief that MANF could be used across multiple disease areas, more so in the treatment of cardiovascular diseases.Amarantus Biosciences Holdings has also announced positive pre-clinical data for MANF on the treatment of retinal damage.
“MANF's potential to treat retinal disorders with this new mechanism of action brings hope to those suffering from retinal disorders, including retinitis pigmentosa and glaucoma. MANF Therapeutics is preparing to launch operations in 2018 for the purpose of re-initiating IND-enabling development towards first-in-man studies in an orphan ophthalmic indication,” said CEO Gerald E. Commissiong.
In addition, the company’s wholly-owned subsidiary, Elto Pharma is preparing a Phase 2b clinical study of Eltoprazine, on the treatment of dyskinesia early next year. This is after the unit was granted patents in Singapore and New Zealand for the treatment of motor symptoms associated with Parkinson’s disease therapies.Recapitalization Amarantus Biosciences has also moved to position itself so that it can be able to generate more shareholder value. The company is currently working with financial advisors as part of a new recapitalization plan that it hopes will unlock more funds, needed to accelerate growth in the various subsidiaries.The company has placed a moratorium on the conversion of Legacy Convertible Securities to common stock. The prohibition should allow the company’ stock to be valued without being subjected to dilution risk that always come into being with the issuance of more stock.Completion of forbearance and capital restructuring agreements with holders controlling a majority of legacy convertible securities mark the first step in the company’s recapitalization plan. However, the company still has to achieve certain restructuring milestones by January 10, 2018, to achieve more restructuring milestones.Pursuant to the agreements, approximately $975,440 in senior secured debt stand to be extinguished via a period issuance of common shares. Amarantus Biosciences is also set to raise up to $500,000 in new funding which should allow it to restart operations in 2018.
"We believe these agreements give the Company the opportunity to rebuild its capital base and raise the funds needed to restart operations," said Mr. Commissiong.
Bottom LineInvestors should take note of Amarantus Biosciences price action given that the stock has been rising steadily, supported by solid fundamentals. The meteoric rise in the stock price to 20 months high could also suggest the addition of big money from large institutional investors.Given the strength of the upward momentum, Amarantus Biosciences remains well positioned for further gains heading into 2018.We will be updating our subscribers as soon as we know more. For the latest updates on AMBS, sign up below!Disclosure: We have no position in AMBS and have not been compensated for this article.
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