AMSTERDAM, December 15, 2011 /PRNewswire/ --
Amsterdam Molecular Therapeutics (Euronext: AMT), a leader in the field of human gene therapy, announced today that the Company has a negative equity position, as a result of ongoing loss-making operations. The development of this negative equity position is in line with previous guidance that the Company has cash into early 2012, and is exploring alternatives for additional financing.
AMT announced on November 17, 2011 that its cash position at September 30, 2011 amounted to 3.8 million, and AMT continues to be loss making and to experience net cash outflows. At December 12, 2011 AMT's cash position amounted to 2.1 million; AMT does not have any loan, credit or other borrowing facilities other than the 5 million convertible loan issued in December 2009.
The Company continues partnering discussions with pharma companies. At this time, AMT anticipates that it may be possible to conclude a partnership for its hemophilia B program during the first half of 2012, provided that additional funding can be secured in the meantime. AMT is also looking at additional collaborations with academic groups, which would contribute towards the short-term funding of its GDNF program for up to three indications.
AMT is continuing to explore all options with regard to the business, its financing, and support from existing shareholders. This includes selling all or part of the business, and raising additional capital in conjunction with its bankers and investors. AMT is also tracking opportunities for funding, from non-dilutive sources such as grants, and collaborations with partners. The Company has already taken appropriate action to reduce its costs, and the number of employees has decreased by approximately 50 per cent to 45 staff. Further cost reductions are possible but the savings would not provide a significantly longer runway for seeking a funding solution. Additional reductions may also have a detrimental effect on those programs still ongoing. In the event that additional cash inflows are not secured, AMT may not be able to continue as a going concern and would therefore be likely to go into insolvency.
The Management of AMT has been in contact with NYSE Euronext. In accordance with Euronext Amsterdam Notice 2011-001, NYSE Euronext will at this time not impose listing measures concerning the Company's negative equity position as long as the Company complies with the (continuing) disclosure requirements set out in paragraph 3 of Euronext Amsterdam Notice 2011-011. This is without prejudice to NYSE Euronext's right to impose listing measures if, in its opinion, facts or developments arise or have arisen with respect to a security which preclude an unconditional continuance of the official listing as provided in Rule 6903/1 Rule Book I. The full text of Euronext Amsterdam Notice 2011-001 in both Dutch and English can be found through the following link: http://europeanequities.nyx.com/sites/europeanequities.nyx.com/files/euronext_amsterdam_-_notice_2011-001.pdf.
In view of its negative net equity position, the Company shall shortly convene a general meeting of shareholders to discuss the measures to be taken in accordance with section 2:108a of the Dutch civil code.
About Amsterdam Molecular Therapeutics
AMT is a world leader in the development of human gene based therapies. AMT has a product pipeline of several gene therapy products in development for hemophilia B, acute intermittent porphyria, Parkinson's disease and SanfilippoB. Using adeno-associated viral (AAV) derived vectors as the delivery vehicle of choice for therapeutic genes, the company has been able to design and validate probably the world's first stable and scalable AAV manufacturing platform. This proprietary platform can be applied to a large number of rare (orphan) diseases caused by one faulty gene and allows AMT to pursue its strategy of focusing on this sector of the industry. AMT was founded in 1998 and is based in Amsterdam. Further information can be found at http://www.amtbiopharma.com.
Certain statements in this press release are "forward-looking statements" including those that refer to management's plans and expectations for future operations, prospects and financial condition. Words such as "strategy," "expects," "plans," "anticipates," "believes," "will," "continues," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning are intended to identify such forward-looking statements. Such statements are based on the current expectations of the management of AMT only. Undue reliance should not be placed on these statements because, by their nature, they are subject to known and unknown risks and can be affected by factors that are beyond the control of AMT. Actual results could differ materially from current expectations due to a number of factors and uncertainties affecting AMT's business. AMT expressly disclaims any intent or obligation to update any forward-looking statements herein except as required by law.
SOURCE Amsterdam Molecular Therapeutics (AMT) B.V