There seems to be some misunderstandings about the deal with Avant. I want to clear it up especially for the new investors who might be reading the Board, but not be up to speed about all of the history:
AMBS gave Avant all of its Diagnostic assets 2 years ago and in return Avant issued AMBS 80 million shares of its company which at the time represented about 1/3 ownership of Avant. I think Avant’s stock was about 30 cents a share at the time. AMBS loaned Avant $400k to do the deal (I’m guessing for attorney and accountant fees) since Avant had no money.
This was one of many big blunders Gerald has done- he gave away our Diagnostics to what was and still is a shell company with one employee and no money and got nothing in return. What was at the time a terrible deal for AMBS only got worse, because Avant’s stock has been diluted and is now 2 cents a share. Furthermore the 80 million shares have been in a lock- up agreement where they cannot be sold and even if they could, they are essentially worthless. You can’t sell 80 million shares of a company on the open market when there is only 50k shares trading a day in the stock. There is no liquidity in Avant.
But now Avant is going to give back the Diagnostic assets to Amarantus AND Amarantus gets to KEEP the 80 million shares! This is an incredibly good deal for AMBS and an incredibly bad deal for Avant. It is almost comical. To clean up the balance owed of the 400k loan, Avant is also giving AMBS an additional 30 million shares! Yesterday AMBS owned 80 million shares in Avant. Today they own 110 million shares in Avant AND they have all of the Diagnostic Assets. The idea that having the Diagnostics assets back might distract from the other assets or screw up a funding is ridiculous. Amarantus was just given additional assets for free.
Amarantus agreed to give the the noteholders its 80 million shares in Avant as part of its settlement agreement. But from the noteholders perspective, nothing has really changed. They are still owed $21 million which they can convert into Amarantus stock down the road. And then if and when they are able to sell any of the 80 million shares (assuming they are still being given those shares), then that amount will be taken off of the $21 million owed to them as before. The value of Amarantus stock is now higher and the value of the Avant stock is now lower, but the amount paid to the noteholders will still be $21 million.
It’s possible that the tender exchange could be delayed until after this deal is completed, but this new agreement with Avant should get done very quickly, since the only people involved is Gerald and Scott VanderMeer.
AMBS gave Avant all of its Diagnostic assets 2 years ago and in return Avant issued AMBS 80 million shares of its company which at the time represented about 1/3 ownership of Avant. I think Avant’s stock was about 30 cents a share at the time. AMBS loaned Avant $400k to do the deal (I’m guessing for attorney and accountant fees) since Avant had no money.
This was one of many big blunders Gerald has done- he gave away our Diagnostics to what was and still is a shell company with one employee and no money and got nothing in return. What was at the time a terrible deal for AMBS only got worse, because Avant’s stock has been diluted and is now 2 cents a share. Furthermore the 80 million shares have been in a lock- up agreement where they cannot be sold and even if they could, they are essentially worthless. You can’t sell 80 million shares of a company on the open market when there is only 50k shares trading a day in the stock. There is no liquidity in Avant.
But now Avant is going to give back the Diagnostic assets to Amarantus AND Amarantus gets to KEEP the 80 million shares! This is an incredibly good deal for AMBS and an incredibly bad deal for Avant. It is almost comical. To clean up the balance owed of the 400k loan, Avant is also giving AMBS an additional 30 million shares! Yesterday AMBS owned 80 million shares in Avant. Today they own 110 million shares in Avant AND they have all of the Diagnostic Assets. The idea that having the Diagnostics assets back might distract from the other assets or screw up a funding is ridiculous. Amarantus was just given additional assets for free.
Amarantus agreed to give the the noteholders its 80 million shares in Avant as part of its settlement agreement. But from the noteholders perspective, nothing has really changed. They are still owed $21 million which they can convert into Amarantus stock down the road. And then if and when they are able to sell any of the 80 million shares (assuming they are still being given those shares), then that amount will be taken off of the $21 million owed to them as before. The value of Amarantus stock is now higher and the value of the Avant stock is now lower, but the amount paid to the noteholders will still be $21 million.
It’s possible that the tender exchange could be delayed until after this deal is completed, but this new agreement with Avant should get done very quickly, since the only people involved is Gerald and Scott VanderMeer.
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