Amarantus Bioscience Holdings has agreed to merge its wholly-owned subsidiary Amarantus Diagnostics into medical diagnostic technology firm Avant Diagnostics.
Both firms have entered into a letter of intent (LOI) to merge the diagnostic businesses. Amarantus will receive 80 million shares of common stock of Avant Diagnostics, upon execution of definitive merger agreements.
The deal will also allow Amarantus to receive 10 million additional shares of common stock based on achievement of certain sales milestones.
The combined company will involve in the development of novel diagnostic assets in the areas of oncology and neurology.
Avant president and CEO Gregg Linn said: "After exploring numerous avenues for implementing Avant’s OvaDx development and commercialization strategy, it is clear that combining Avant’s and Amarantus’ diagnostic assets and core competencies forms a platform that provides maximum value to our collective shareholders."
The current assets of both firms include Avant Diagnostics’ OvaDx immuno-oncology diagnostic assay, Amarantus Diagnostics’ MSPrecise neuroimmunology-based next-generation sequencing diagnostic assay and LymPro neuroimmunology-based flow cytometry assay.
OvaDx is a protein-based test that will be used to screen and diagnose ovarian cancer, while MSPrecise is a neuroimmunology-based diagnostic assay for multiple sclerosis (MS).
LymPro test has been developed for Alzheimer’s disease (AD), which is claimed to offer early, accurate and scalable diagnostic result for physicians.
Subject to customary closing conditions, the deal is expected to complete in the second quarter of this year.
Concurrently, Amarantus has also signed a deal with Maryland-based CLIA laboratory to house its assays in preparation for CLIA-enabling validation studies.
Once the deal concludes, Avant will adopt the deal and completes the development of OvaDx in the CLIA-certified facility.
Image: Amarantus and Avant to merge the diagnostic businesses. Photo: courtesy of stockimages / FreeDigitalPhotos.net.