Biosyntech to file for bankruptcy protection and resignation of all members of board of directors
/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWS WIRE SERVICESOR DISSEMINATION IN THE UNITED STATES./
LAVAL, QC, May 12 /CNW Telbec/ - BioSyntech, Inc. ("BioSyntech" or the "Company") (TSX: BSY), a biotechnology company developing biotherapeutic thermogels for regenerative medicine, today announced that it will seek court protection under the Bankruptcy and Insolvency Act (Canada) ("BIA") in Canada.
As a result of current economic circumstances, BioSyntech's Board of Directors authorized BioSyntech to take this action as the best alternative for the interests of the Company, its employees, partners, creditors and other stakeholders. BioSyntech took this decision after thorough consultation with its advisors and extensive consideration of all other alternatives contemplated in the strategic review process.
BioSyntech intends to avail itself of the provisions of the BIA and to file a notice of intention. PricewaterhouseCoopers will serve as trustee for the restructuring process. No proposal has yet been elaborated by BioSyntech.
All members of the Board of Directors of BioSyntech have submitted their resignation from the Board of Directors. The Company will also file a motion with the Court requesting the appointment of an interim receiver, PricewaterhouseCoopers, in order to manage the Corporation in the absence of a Board of Directors.
BioSyntech is a medical device Company specialized in the development, manufacturing and commercialization of advanced biotherapeutic thermogels for regenerative medicine (tissue repair) and therapeutic delivery. BioSyntech's platform technology is a family of hydrogels called BST-Gel(R), some of which are liquid at low temperature and solid at human body temperature. These gels can be injected or applied to a specific local site and offer beneficial properties for the local repair of damaged tissue such as cartilage, bone and chronic wounds and provide the benefit of avoiding invasive surgery. The Company's lead, late-stage product, BST-CarGel(R) is currently undergoing an international pivotal trial. For additional information, visit www.biosyntech.com
This press release contains forward-looking statements and information which are subject to material risks and uncertainties. Such statements are not historical facts and are based on the current expectations of management. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking information. These risks include, but are not limited to, those associated with our capacity to finance our activities, the adequacy, timing, and results of our clinical trials, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of BioSyntech's products, the availability of government and insurance reimbursements for BioSyntech's products, the strength of our intellectual property, the success of our research and development programs, reliance on subcontractors and key personnel, and other risks and uncertainties detailed from time-to time in our filings with the Canadian securities commissions.
Readers should not place undue reliance on the forward-looking information, given that (i) our actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions which were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, could prove to be inaccurate. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in BioSyntech's annual report and other documents filed from time to time with the Canadian securities commissions which are available at www.sedar.com. These statements speak only as of the date they are made, and we assume no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.For further information: Casey Gurfinkel, The Equicom Group, (416) 815-0700 x283, email@example.com