DGAP-Adhoc: Cytos Biotechnology Ltd to wind down Key Operational Activities
05.05.2014 – 07:07
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 --------------------------------------------------------------------------- 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 +++++ 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. The issuer is responsible for the contents of the release. EquityStory publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. The Swiss news archive can be found at www.equitystory.ch/news --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------