Cytori Announces Corporate Restructuring & Cost Reduction Plan
September 01 2017 - 3:15PM
Cytori Therapeutics (NASDAQ:CYTX) (“Cytori” or the “Company”) today
announced a substantial corporate restructuring intended to
significantly reduce expenses while maintaining its ability to
execute on its BARDA-sponsored cell therapy program, Japanese
business and oncology program. The Cytori Habeo program for
scleroderma is expected to move forward based on feedback from its
forthcoming meetings with the FDA in the U.S. and PMDA in Japan.
The restructuring is expected to reduce Cytori’s workforce by
approximately 50% and significantly reduce quarterly operational
cash burn.
“Our need to conserve capital and focus our
talented team on the priorities most relevant for stockholders and
other key stakeholders has sadly required us to take action that
will affect a number of valued and capable members of the Cytori
team,” said Dr. Marc H. Hedrick, Cytori’s President & CEO. “In
addition, we have engaged TAP Advisors to help us evaluate several
potential opportunities the company has that could enhance our
ability to create value for stockholders.”
The Company and its advisors, TAP Advisors, will
consider a range of options aimed at enhancing shareholder value,
including a sale of the Company, a reverse merger, a business
combination or a sale, license or other disposition of corporate
assets of the Company, as well as potential opportunities to raise
capital in the shareholder’s best interest.
About Cytori
TherapeuticsCytori is a therapeutics company
developing regenerative and oncologic therapies from its
proprietary cell therapy and nanoparticle platforms for a variety
of medical conditions. Data from preclinical studies and clinical
trials suggest that Cytori Cell Therapy™ acts principally by
improving blood flow, modulating the immune system, and
facilitating wound repair. As a result, Cytori Cell Therapy™ may
provide benefits across multiple disease states and can be made
available to the physician and patient at the point-of-care through
Cytori’s proprietary technologies and products. Cytori
Nanomedicine™ is developing liposome encapsulated therapies for
regenerative medicine and oncologic indications. For more
information, visit www.cytori.com.
Cautionary Statement Regarding
Forward-Looking Statements
This press release includes forward-looking
statements regarding events, trends and business prospects, which
may affect Cytori’s future operating results and financial
position. Such statements, include, but are not limited to,
statements regarding, the potential to reduce expenses, the ability
to continue to progress the BARDA-sponsored cell therapy program
and the potential to engage in any strategic transactions. These
statements are subject to risks and uncertainties that could cause
Cytori’s actual results and financial position to differ
materially. Some of these risks and uncertainties include: the risk
that the cost and other negative effects related to the workforce
reduction may be greater than anticipated; the risk that Cytori may
not realize the benefits expected from the workforce reduction or
other cost control measures; the risk that Cytori may need
additional funds to conduct its operations, and that investors may
not agree with the manner in which Cytori allocates its resources;
unexpected or unfavorable clinical data, and the risk that
regulatory agencies may interpret or weigh the importance of data
differently and reach different conclusions than Cytori, request
additional information, have additional recommendations or change
their guidance or requirements; the timing, success and cost of
Cytori’s research and development and related strategy and
decisions; Cytori’s ability to comply with the terms of its credit
agreement and the potential for acceleration of amounts owed to its
secured lender; the potential for litigation or other disagreements
with third parties; and other risks and uncertainties described
under the “Risk Factors” section in Cytori's Securities and
Exchange Commission filings on Form 10-K and Form 10-Q. Cytori
assumes no responsibility to update or revise any forward-looking
statements contained in this press release to reflect events,
trends or circumstances after the date of this communication.
Investor Contact:
Tiago Girao
ir@cytori.com
Cytori Therapeutics, Inc.
1-858-458-0900
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