DGAP-Adhoc: Cytos Biotechnology Ltd to wind down Key Operational Activities
Cytos Biotechnology AG / Key word(s): Strategic Company Decision
05.05.2014 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR
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Cytos Biotechnology Ltd to wind down Key Operational Activities
Schlieren, Switzerland - May 5, 2014 - Cytos Biotechnology AG (SIX: CYTN)
today announced that it has entered into agreements with major creditors
resulting in a reduction of liabilities and provisions of the company of
approximately CHF 5 million. In addition, the four convertible loan note
holders Abingworth, Amgen, venBio and Aisling have agreed to subordinate
part of their loan notes to ordinary creditors. The loan notes will remain
senior to the convertible bonds. In the aggregate, these measures allow for
a continued operation of the company.
In order to reduce future expenses, Cytos is winding down key operational
activities, in particular related to the development and manufacturing of
CYT003. The procedure for a mass dismissal of the employees has been
concluded. As a result, 24 employees have received a notice of termination
of their employment agreement, taking effect as of July 31, 2014. As a
further cost saving measure, the size of the company's board of directors
will be reduced to four directors. Drs. Deniz and Krieg and Mr. Brooke have
agreed to step down as board members effective May 31, 2014.
The company is also seeking to engage in discussions with interested
parties regarding its VLP B-cell vaccines platform and ongoing preclinical
development programs based on the platform.
As stated in the press release issued on April 14, 2014, the cash balance
of the company at March 31, 2014 was CHF31 million and the company does not
expect to be able to repay any convertible bonds, which are subordinated to
other creditors. Likewise, the company also does not expect to make any
payments to shareholders.
For further information, please contact:
Cytos Biotechnology Ltd
Harry Welten, MBA
Chief Financial Officer
Tel: +41 44 733 46 46
harry.welten@cytos.com
About Cytos Biotechnology Ltd
Cytos is a public biopharmaceutical company focused on the development of
targeted immuno-therapies with a VLP B-cell vaccines platform and ongoing
preclinical development programs based on the platform. Cytos was founded
in 1995 as a spinoff from the Swiss Federal Institute of Technology (ETH)
in Zurich. It is located in Schlieren (Zurich), Switzerland. The Company is
listed according to the Main Standard on the SIX Swiss Exchange Ltd under
the symbol CYTN.
Forward Looking Statements
This media release contains certain forward-looking statements that involve
risks and uncertainties that could cause actual results to be materially
different from historical results or from any future results expressed or
implied by such forward-looking statements. You are urged to consider
statements that include the words "will" or "expect" or the negative of
those words or other similar words to be uncertain and forward-looking.
Factors that may cause actual results to differ materially from any future
results expressed or implied by any forward-looking statements include
scientific, business, economic and financial factors, Against the
background of these uncertainties, readers should not rely on
forward-looking statements. The Company assumes no responsibility for
updating forward-looking statements or adapting them to future events or
developments.
www.cytos.com
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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=NBLQAWXCGX
Document title: Cytos_Press_E_140505
05.05.2014 News transmitted by EQS Schweiz AG.
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Language: English
Company: Cytos Biotechnology AG
Wagistr. 25
8952 Schlieren
Switzerland
Phone: +41 44 733 4747
Fax: +41 44 733 4740
E-mail: info@cytos.com
Internet: www.cytos.com
ISIN: CH0011025217, CH0029060735
Valor: -
Listed: Freiverkehr in Berlin, München, Stuttgart;
Frankfurt in Open Market ; SIX
End of Announcement EQS Group News-Service
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