"The Board is also evaluating Amarantus' intellect

"The Board is also evaluating Amarantus' intellectual property, with a goal of determining strategic priorities, including which of Amarantus' intellectual property may be maintained for future projects, and which may be sold, cancelled or spun off into new entities. "

Following SeD Biomedical's preliminary due diligence, SeD Biomedical has informed Amarantus' management of strategic measures that must be met by creditors and certain other parties as a condition for any investment, loan or asset injection by SeD Biomedical.

Negotiations have been going on for many, many months- since last Fall at least. Greg Linn told me in November that he expected the deal to be done by Christmas, so it is no surprise that there are still some details to be completed before going to contract. I am pretty sure it has nothing to do with the payoff amounts or discounts the note holders have already agreed to. I think it is likely something to do with what they want to do with one or more of the assets. It may have to do with how they structure the Cutanogen entity or some other detail related to how they fund some of the assets. Chan has control of the company now and he won't walk.

The noteholders will agree to whatever else has to happen. They stand to actually make more money this way by keeping some ownership in ESS and they don't have any leverage at this point- they gave up control to Chan. Bottom line is whatever is in the best interest of SeD at least in terms of negotiating with the noteholders is in the best interest of the shareholders. I have been involved in many high level negotiations in my real estate career and this is par for the course.