BURNABY, BC, April 12 /CNW/ - Chromos Molecular Systems Inc. ("Chromos";
TSX: CHR) 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.
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
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 (*) 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.
For further information:
For further information: Jeff Charpentier, Vice President, Finance and
CFO, Tel: (604) 415-7132, Email: email@example.com, Website: