Swiss Biotech Relief Therapeutics to Consolidate Offices and Cut Jobs, CEO and CFO Step Down
Published: Feb 20, 2017
Zurich, Switzerland, 20 February 2017
RELIEF THERAPEUTICS Holding AG (“Relief”, “the Company”) announces today that it has signed a term sheet securing CHF 500’000 of financing by issuing new shares of its common stock. The proceeds are expected to be received in the coming days.
The Company also announces today that it will take new cost cutting measures by reducing and optimizing certain elements of its fixed overhead structure. Measures are likely to include a consolidation of offices and reductions in personnel costs.
In addition, the Company also announces today that Mr. Raffaele Petrone and Mr. Antonino Amato have resigned from the Board of Directors. The Company will continue with a three-member board until the next Annual General Meeting, which will take place in May 2017. (A specific day will be communicated in the coming weeks.)
In addition to resigning from his position on the Board of Directors, Mr. Petrone has also resigned from his role as Chief Executive Officer. Mr. Gael Hedou, until now the Company’s Chief Operating Officer, will assume the role of interim-CEO effective immediately.
The Company also announces today that Mr. Timothy Snyder has served notice that he will be relinquishing his duties as Chief Financial Officer as of August 31, 2017, but will ensure a smooth and seamless transition of the Company’s finance function.
Details of the new financing:
Under the terms of this new round of financing, GEM Global Yield Fund LLC SCS (“GEM”), currently a major shareholder, will subscribe to 50 million new Relief shares at a price of CHF 0.01. Additionally, Relief will issue to GEM 600 million warrants with an exercise price of CHF 0.01 exercisable for a period of 5 years.
Mr. Gael Hedou, interim CEO, states: “The liquidity provided by this new share subscription will provide Relief with the operating cash needed to sustain itself while we continue to aggressively pursue new business opportunities aimed at consolidating and making Relief, a healthier company.” Mr. Hedou adds: “I want to assure our shareholders and business partners that Relief’s management and board of directors is committed to a smooth and seamless transition of its leadership structure. In the same breath, I wish to thank Mr. Petrone and Mr. Amato for their relentless commitment as board members. Mr. Petrone has been a board member and CEO since 2013. He is one of the founders of the Company and has shepherded the organization through some very difficult times. Mr. Amato joined the board last year and has been a strong and reliable source of wisdom, reason, and creativity.”
About Relief Therapeutics Holding AG
RELIEF THERAPEUTICS Holding AG is a clinical stage biotechnology company with a portfolio of drug candidates derived from natural human origins. Its two most promising drug candidates are aviptadil for the treatment of sarcoidosis (already in Phase III) and low dose interleukin-6 (atexakin alfa) for the treatment of peripheral diabetic neuropathy (already in Phase II). Aviptadil development in sarcoidosis focuses the drug on an orphan disease market, in which European regulators have indicated that a single pivotal Phase III trial would be sufficient to support approval. Atexakin alfa is the subject of an exclusive worldwide development and commercialization agreement with Merck-Serono, a division of the global established pharmaceutical firm Merck KGaA, and has been the subject of multiple clinical trials. Based on its unique mechanism of action, atexakin alfa could become the first regenerative therapeutic for peripheral neuropathy. The peripheral diabetic neuropathy market is estimated to reach $4.1 billion in 2019, according to Datamonitor.
RELIEF THERAPEUTICS Holding AG is listed on the SIX Swiss Exchange under the symbol RLF and is headquartered in Zurich, Switzerland.
For further information, please visit the Relief website at www.relieftherapeutics.com or contact investor relations at:
Relief Therapeutics Holding AG
Dr. Raghuram Selvaraju
Tel: +41 44 723 59 59
Disclaimer: This communication expressly or implicitly contains certain forward-looking statements concerning Relief Therapeutics Holding AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of Relief Therapeutics Holding AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Relief Therapeutics Holding AG is providing this communication as of this date and does not undertake to update any forward looking statements contained herein as a result of new information, future events or otherwise