BURNABY, BC, April 12 /PRNewswire-FirstCall/ - Chromos Molecular Systems Inc. today announced plans to make a restructuring proposal to the company’s creditors and temporary employee layoffs.
Chromos currently has insufficient financial resources to meet all of its existing creditor obligations. The company has filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act. This will facilitate an orderly evaluation of strategic alternatives including those designed to strengthen the Company’s business model and capital structure.
The Notice of Intention filing allows Chromos to maintain scaled-back operations and maintain the integrity of its assets while evaluating its strategic alternatives and developing a restructuring proposal for creditors. During this period Campbell Saunders Ltd., an experienced Trustee, will monitor the activities of the Company and assist it in formulating a proposal to its creditors.
As part of the scaling back of operations, Chromos has provided temporary lay-off notices to 12 employees, leaving 13 remaining employees. Further temporary lay-offs may be implemented as required.
“The Company will continue to operate while we undertake the restructuring process” said Alistair Duncan, President and Chief Executive Officer. “Management and the Board of Directors are committed to this process and are confident that it will lead to an outcome to the benefit of all stakeholders. The ongoing support of our customers, employees and suppliers will help to ensure we can achieve this outcome.”
Additional financing will likely be required during the period to ensure that the company can complete the restructuring process. There can be no assurance that additional financing will be available at all or on acceptable terms to permit Chromos’ current operations to continue. If Chromos is unsuccessful in raising sufficient financing it will be required to scale back further or terminate certain or all of its operations.
There can be no assurance that the company will successfully emerge from its reorganization proceedings. Approval of a Plan and emergence from reorganization proceedings are subject to a number of conditions.
About Chromos
Chromos is a biopharmaceutical company with two drug development programs focused on inflammatory diseases and thrombotic disorders. The Company’s lead product, CHR-1103, is a humanized monoclonal antibody being developed as an acute treatment for relapses associated with multiple sclerosis (MS). Chromos generates revenue from its proprietary ACE System technology to engineer production quality cell lines to manufacture biopharmaceutical products including monoclonal antibodies. For more information visit our website at www.chromos.com.
Risks and Uncertainties
Certain of the statements contained in this press release are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Chromos (the “Company”), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
To the extent possible, management implements strategies to reduce or mitigate the risks and uncertainties associated with the Company’s operations. Operating risks include (i) the continued availability of capital to finance the Company’s activities; (ii) the Company’s limited cash position, (iii) the ability to successfully obtain proof of the effectiveness of the Company’s technology (iv) the ability to complete and maintain corporate alliances relating to the development and commercialization of the Company’s technology; (v) the ability to obtain and enforce patent and other intellectual property protection for the Company’s technology; (vi) market acceptance of the Company’s technology; (vii) the competitive environment and impact of technological change; (viii) the Company’s ability to attract and retain employees to carry out its business plans; (ix) the timely development and commercialization of any technology or products that are contingent on the completion and maintenance of corporate alliances with third parties (x) the demand for repayment of the outstanding Notes by the Noteholders and (xi) regulatory approval for the conversion of the outstanding Notes. Further details on Chromos’ operating risks can be found in the Company’s Quarterly and Annual Reports to Shareholders.
CONTACT: Jeff Charpentier, Vice President, Finance and CFO, Tel: (604) 415-7132, Email: jcharpentier@chromos.com, Website: www.chromos.com
Chromos Molecular Systems Inc.
CONTACT: Jeff Charpentier, Vice President, Finance and CFO, Tel: (604)415-7132, Email: jcharpentier@chromos.com, Website: www.chromos.com
