EANS-News: Sygnis Pharma AG proposes reduction of share capital to improve flexibility on capital markets
Heidelberg (euro adhoc) -
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Annual & Special Corporate Meetings
Press Release
Heidelberg, October 20, 2010 - SYGNIS Pharma AG (Frankfurt: LIO; ISIN DE0005043509; Prime Standard), a clinical stage biotech company developing innovative CNS treatments, invited shareholders to its Annual General Meeting for financial year 2009 / 2010 on November 30, 2010. At the meeting the Board will propose a reduction of the Company´s share capital according to §§ 222 ff. German Stock Corporation Act (AktG).
This reduction will be combined with a consolidation of the shares in a 3:1 ratio. As a result, the share capital will be reduced from EUR 41,258,643 to EUR 13,752,881, allocated to 13,752,881 shares outstanding.
The purpose of this process is primarily to improve the Company´s abilities to interact on the capital markets. The planned measure is based on the fact that the Company´s share price has been below the nominal value of EUR 1 for a longer period. Following the capital reduction and consolidation of shares, the share price is expected to increase significantly to a level above the nominal value.
The SYGNIS share will thus comply with the relevant requirements and will be more attractive for investors. Furthermore, the planned measure will improve the flexibility of the company for future capital measures and the development of financing alternatives. The released capital will be used for the reduction of losses.
As of June 30, 2010 the liquidity of the company was EUR13.1 million.
About SYGNIS Pharma SYGNIS Pharma AG, headquartered in Heidelberg, is a biopharmaceutical company listed on the Prime Standard of the German stock exchange. The Company is focused on the research, development and marketing of innovative therapies for the treatment of disorders of the Central Nervous System. These include stroke and various forms of dementia. These disorders are characterized by an acute or gradual loss of nerve cells, which for the patients always means a decline of functional abilities. Although there is great medical demand, there are currently no or only inadequate treatment options available.
One of the central elements in the Company´s value-creation chain is the continued development of the existing product pipeline. This is achieved by
testing the Company´s proprietary compounds, which are already under development in a number of further CNS indications. Within specific R&D programs at SYGNIS, new pre-clinical drug candidates are identified and evaluated as well as early-stage projects are initiated for the purpose of partnering.
Disclaimer Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward- looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of SYGNIS Pharma AG may deviate greatly from the established conclusions or implied predictions contained in such statements. SYGNIS does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. ###
end of announcement euro adhoc
Further inquiry note:
For further information please contact:
SYGNIS Pharma AG:
Dr. Franz-Werner Haas
Vice President Operations
+49 (0) 6221 454 812
franz-werner.haas@sygnis.de
Media-Contact:
Julia Phillips
Financial Dynamics
Tel.: +44 (0) 20 7269 7187
Branche: Biotechnology
ISIN: DE0005043509
WKN: 504350
Index: CDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
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München / free trade