Amarantus BioScience Holdings Inc. completed its sublicense agreement with Emerald Organic Products Inc. for the rights to its therapeutic products.
Eden Prairie, Maine-based Emerald has received development rights to Amarantus' skincare product engineered skin substitute, cell loss prevention therapy mesencephalic astrocyte-derived neurotrophic factor, and protein discovery platform PhenoGuard.
As part of the deal, Amarantus is receiving an up-front payment of preferred stock in Emerald to be valued at a minimum of $66.6 million and will receive single-digit royalties, with a right to buy into up to double-digit royalties until April 2022.
Amarantus can convert the preferred stock it has received in the agreement to 33,333,333 shares in Emerald in April 2022, before which it can convert the preferred stock when Emerald's shares have maintained an average price above $5 apiece on the average volume of 1 million shares traded for a period of 20 days.
New York-based biopharmaceutical company Amarantus' president and CEO, Gerald Commissiong, will join Emerald's board, while its chief scientific officer, John Commissiong, will become a scientific adviser for the medical cannabis company.
Gerald Commissiong and Elise Brownell, Amarantus' executive vice president of operations and project management, will join Emerald's life sciences division, which Emerald intends to start with its gains in the agreement, said Emerald President and CEO Ian Parker.
The companies are still negotiating a deal for eltoprazine, a potential drug for treating dyskinesia — uncontrolled movement associated with treatment by Parkinson's disease drug Levodopa. The drug is under development by Elto Pharma Inc., Amarantus' joint venture with Psychogenics Inc.