GeNeuro SA Obtains the Opening of Debt-Restructuring Proceedings
September 30 2024 - 12:00AM
Business Wire
Regulatory News:
GeNeuro (Euronext Paris: CH0308403085 - GNRO), a
biopharmaceutical company developing new treatments for
neurodegenerative and autoimmune diseases, announces that the
Geneva Court of First Instance has approved its application for a
debt-restructuring moratorium dated July 15, 2024, aimed at
restructuring its debts and finding solutions for the continuity of
its activities in the interests of all stakeholders.
Debt-restructuring moratorium
procedure
As communicated on July 15, 2024, following the unsatisfactory
results of its phase 2 clinical trial GNC-501, testing temelimab
against placebo in patients suffering from post-COVID-19
neuropsychiatric syndromes, and in view of the Company's
over-indebtedness, GeNeuro's Board of Directors had concluded that
it was necessary, under applicable Swiss law, to notify the
over-indebtedness to the competent Swiss court and to request the
latter to open debt-restructuring proceedings to enable the
restructuring of its debts and the development of solutions to
remedy the Company's situation. Following the hearing held on
September 12, 2024, the Geneva Court of First Instance issued a
ruling on September 26 2024 declaring the opening of provisional
debt-restructuring proceedings for a period of 4 months, until
January 27, 2025, with the appointment of a commissary.
The purpose of this debt-restructuring moratorium is to enable
the Company to evaluate all solutions enabling it to continue its
business activities, and to conduct negotiations with its
creditors, while continuing to seek ways to recapitalize, advance
and/or monetize its assets under development which target multiple
sclerosis and amyotrophic lateral sclerosis.
The Geneva Court of First Instance judgment will be published in
the Feuille d'Avis Officielle du canton de Genève and the Feuille
Officielle Suisse du Commerce.
Postponement of the publication of the
Company's half-year results
In addition, the Company announces that its Board of Directors
has decided to postpone the publication of its June 30, 2024
half-yearly results and half-yearly financial report in order to be
able to take into account the financial impacts of the
restructuring targeted by the Company as part of the granted
debt-restructuring moratorium procedure. The Company will announce
by press release the new date of their approval and
publication.
About GeNeuro
GeNeuro's mission is to exploit the biology of human endogenous
retroviruses ("HERVs") to develop safe and effective treatments for
neurodegenerative diseases, by neutralizing the pathogenic factors
encoded by HERVs, which account for 8% of human DNA.
GeNeuro is based in Geneva, Switzerland, and has R&D
facilities in Lyon, France.
About the application for debt-restructuring
moratorium
Under Swiss law (the law applicable to GeNeuro SA), a stay of
execution is a preventive measure to bankruptcy proceedings. The
purpose of this procedure is to enable a company in financial
difficulty to restructure its debts with its creditors and find
measures to improve its situation. The stay would protect the
Company from legal action by its creditors while it works with the
"commissaire au sursis", an independent expert appointed by the
judge to supervise the process, help draw up a draft composition
agreement and validate possible recovery measures. This process may
result in a recapitalization of the company, a restructuring of its
debt or a sale of some of its assets, among other things.
The aim of this procedure is to reach an agreement that will
enable the Company to continue its operations while satisfying its
creditors.
For more information, visit www.geneuro.com
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Forward-looking statements: This document contains
forward-looking statements and estimates with respect to the
financial condition, results of operations, strategy, plans and
future performance of GeNeuro and the market in which it operates.
Some of these statements, forecasts and estimates may be identified
by the use of words such as, without limitation, "believes",
"anticipates", "expects", "projects", "plans", "seeks",
"estimates", "may", "will" and "continue" and similar expressions.
They include all matters that are not historical facts. Such
statements, forecasts and estimates are based on various
assumptions and assessments of known and unknown risks,
uncertainties and other factors, which were believed to be
reasonable when they were made but which may not prove to be
correct. Actual events are difficult to predict and may depend on
factors beyond the company's control. Consequently, GeNeuro's
actual results, financial condition, performance or achievements,
or industry results, may differ materially from future results,
performance or achievements as expressed or implied by such
statements, forecasts and estimates Given these uncertainties, no
representation is made as to the accuracy or fairness of such
forward-looking statements, forecasts and estimates. Furthermore,
the forward-looking statements, forecasts and estimates are valid
only as of the date of publication of this document. GeNeuro
disclaims any obligation to update any such forward-looking
statements, forecasts or estimates to reflect any change in the
Company's expectations with regard thereto, or any change in
events, conditions or circumstances on which any such statements,
forecasts or estimates are based, except as required by French
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240929580658/en/
GeNeuro Jesús Martin-Garcia Chairman and CEO +41 22 552
48 00 investors@geneuro.com
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