SEOUL, Korea--(BUSINESS WIRE)--AmStem Corporation (Pink Sheets: AMST), announced today that the company has received a binding $3.1 million commitment from its Korean partner firm Histostem to fund operations in the United States and possibly elsewhere. The company simultaneously announced a shift in its business model and plans for new leadership of the company.
AmStem Board Chairman Dr. Han Hoon, who is also founder and CEO of Histostem, said, “In 2010, Histostem and AmStem negotiated an interlocking relationship in which Histostem acquired 60% control of AmStem and in turn AmStem was to acquire 90% ownership of Histostem. The Histostem acquisition of 60% of AmStem stock was completed. However, Korean commercial law and regulations did not allow the necessary approval and the AmStem acquisition of Histostem cannot be completed.
“Additionally, to deal with these issues, we are revising AmStem’s business plan to reflect the company’s changed status and also with a newly shaped management to be announced soon,” said Dr. Han. “Based on AmStem’s new business plan, Histostem will grant AmStem exclusive marketing and distribution rights for North America, South America and Europe to sell Histostem products including SteMixx cosmeceutical products, the HomStem line of skin care products and the HairStem hair restoration products. In addition, Histostem is recapitalizing AmStem with a commitment of a $3.1 million investment this year to enable AmStem to carry out its new sales and marketing role.
“We are making other necessary corrections and adjustments to further reenergize the company and to move it forward. In this endeavor, our additional goals are:
• To restore AmStem to its previous fully public reporting status
• To install new management as appropriate to successfully pursue AmStem’s revised business model.
“We are determined to restart AmStem with sufficient resources to achieve its new business plan. The journey to restore AmStem’s status as a viable and important stem cell company has begun. We will keep our shareholders apprised of developments as we progress over the coming months,” Dr. Han said.
About AmStem Corp.
AmStem Corp. is a corporation registered in the State of Nevada with offices in San Francisco, California and Seoul, Korea. The company has been granted exclusive rights to market the stem cell products of Histostem outside of Korea. Histostem has numerous and varied domestic and international patents related to stem cell processing, application and clinical treatments. It owns one of the largest cord blood stem cell banks in the world with more than 80,000 cord blood units stored in Korea. The units of cord blood are processed and stored by the company for use in unrelated transplant for personal storage and use in the family setting for transplant and regenerative medicine. The company is developing a line of cosmeceuticals based upon its proprietary stem cell technology and sourcing its own materials from its expansive operation in Korea. Histostem has treated more than 800 people in clinical trials for purposes of developing its patent portfolio of regenerative technologies.
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For more information contact Tom Fox at Hawk Associates at (305) 451-1888 or visit: http://amsteminc.com. – Please be advised that this will be changed soon to www.amstem.com
Forward-Looking Statements
Some of the statements included in this press release, particularly those anticipating future clinical and business prospects for AmStem Corporation may be forward-looking statements that involve a number of risks and uncertainties. For these statements, we claim the protection of the safe harbor for forward-looking statement contained in the Private Securities Litigation Reform Act of 1995. Among the factors that could cause our actual results to differ materially are the following: our ability to obtain necessary capital, successfully complete clinical trials, our ability to meet anticipated development timelines, our ability to establish global market for the cord blood cells, clinical trial results, successfully consummate future acquisitions, manufacturing capability or other factors; and other risk factors identified from time to time in our reports filed with the Securities and Exchange Commission. Any forward-looking statements set forth in the press release speak only as of the date of this press release. We do not intend to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof.