Amarantus Bioscience Holdings Inc (OTCMKTS:AMBS) share price has collapsed over 60% since February and close of Friday the stock ended up 6.12% on significant volume with over 1.71 million shares being traded which is equivalent to 6.3% of the outstanding shares being traded on almost a daily basis.
Share turnover ratio is 6.3% which takes the number of shares traded divided by the number of available shares. Given this ratio, it shows that there is significant liquidity in the stock which is beneficial to investors, day traders, and momentum traders seeking to make a quick buck. The sock has been trading under its 30 and 10 weekly moving averages for over a year now. In 2015, AMBS announced that it would do a 1 to 150 reverse split which means that for every 150 shares an investor will now have 1 thereby reducing the total number of outstanding shares in increasing the share price by 150 times.
In recent developments the company announced that it had received a $3 million capital infusion. The investment came from a large institutional investor which is a vote of confidence to the company and should provide investors and shareholders with some relief. It is a preferred stock which is convertible. This means that warrants are available to the investor which are exercisable over the course of five years at common stock price of $0.40. The total warrants made as part of the agreement is 13.2 million shares compared to the current shares outstanding of only 27 million. The share price would have to rise 250%+ in the next five years for the warrants to be exercisable which seems to be fair terms for investors and shareholders who start investing today at these low levels.
The capital infusion is much needed as AMBS intends to accelerate their business plan and develop partnerships. AMBS has a cutting edge program called ESS which is a revolutionary technology allow for human skin to grow full thickness and will be huge in the severe burn care.
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AMBS is currently trading at a $3.41 million market valuation. AMBS has a cutting edge, revolutionary technology that allows full-thickness growth of human skin and will be extremely valuable for severe burns. AMBS raised $3.3 million which is almost the same size as its current market cap. This should provide credibility to the company and also for the fact that terms of the agreement were reasonable.
We will be updating on AMBS when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with AMBS.
Disclosure: we hold no position in AMBS either long or short and we have not been compensated for this article.
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