Regenicin Enters Into Asset Purchase Agreement
with Amarantus Bioscience Holdings, Inc.
LITTLE FALLS, N.J., Nov. 19, 2014 /PRNewswire/ -- Regenicin, Inc. (OTC Bulletin Board: RGIN) a biotechnology company specializing in the development of and commercialization of regenerative cell therapies to restore the health of damaged tissues and organs, announced today that it has entered into an Asset Purchase Agreement with Amarantus Bioscience Holdings, Inc. ("Amarantus"). Under the agreement, Amarantus acquires Regenicin rights and claims in the company's litigation currently pending against Lonza Walkersville and Lonza America, Inc. This included all of Regenicin's Cutanagen intellectual property rights and any Lonza manufacturing know-how technology Regenicin may have. In addition, Regencin will sell to Amarantus its PermaDerm trademark and related intellectual property rights associated with it.
The purchase price to be paid by Amarantus consists of $3.5 million in cash, and $3.0 million in (value of) Amarantus common stock. The cash payments were set to be made as follows: $500,000 at the closing, $250,000 on December 31, 2014 and $2,750,000 on January 31, 2015. The $3.0 million in Amarantus common stock was satisfied by the issuance to Regenicin of 37.5 million shares of Amarantus common stock. These shares will be restricted for six months.
Additionally, as part of the agreement, Amarantus agreed to pay Regenicin attorneys on the Lonza litigation, Gordon & Rees, the sum of $450,000, which will satisfy in full, all obligations of Regenicin related to the Lonza litigation. In addition Regenicin granted to Amarantus an exclusive five year option to license any engineered skin product the company develops for the treatment of patients designated as severely burned by the FDA.
As a result of this agreement, Regenicin has been able to conclude the company's participation in the lawsuit with Lonza and continue the company's primary goal of developing and securing approval of life-saving engineered skin substitute products. The proceeds provided under this agreement will greatly enhance the financial condition of the company, funding ongoing development efforts and operating expenses, without the need to incur additional debt or dilute current shareholders.
"We will be reinitiating our communication efforts with shareholders, who were severely restricted under the previous Lonza Agreement and subsequent lawsuit," said Randall McCoy, Regenicin's CEO. "We hope to keep our shareholders and stakeholders fully informed of our progress as we move toward FDA approval of our new product line.
Finally, we wish to thank all our shareholders and stakeholders for their patience and support during the very difficult period now behind us, and we look forward to a successful and rewarding future together."
Regenicin, Inc. (OTC Bulletin Board: RGIN), is a biotechnology company specializing in the development of regenerative cell therapies to restore the health of damaged tissues and organs. Regenicin, which was founded in 2010, has assembled a world-class management team with a proven track record for developing and bringing innovative medical devices and biotechnology products to market. The company is publicly traded with headquarters in New Jersey. For more information on Regenicin, Inc., as well as its technologies and products, please visit the company website at www.regenicin.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company's business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.