SYDNEY, Aug. 14, 2017 /PRNewswire/ -- Novogen Ltd (ASX:
NRT; NASDAQ: NVGN), an Australian oncology drug development
company, is pleased to provide an update to investors on a review
of business operations recently completed by the Board and
management team. The review was initiated following appointment of
Iain Ross as Chairman on
8 June 2017, and has involved an
extensive process of consultation with shareholders and
investors.
Streamlined Board Reduces Costs
Novogen previously announced on 8 June
2017 that the Board of Directors had been reduced in size,
with two non-executive Directors stepping down from the Board. The
changes leave Novogen with a Board comprising three non-executive
Directors (Iain Ross, Bryce Carmine, and Steven Coffey), and one executive Director
(James Garner, Chief Executive
Officer), which is considered optimal to satisfy ASX, NASDAQ, and
SEC regulatory obligations.
In addition to the streamlined membership of the Board,
Directors have offered to reduce their fees, providing additional
savings to the Company. As a result of these changes, the annual
cost of the Board has been reduced by approximately 50%.
In order to enhance the operational efficiency of the Board, the
number of Board Sub-Committees is being streamlined, and the
Charters governing operation of these Sub-Committees are being
updated to reflect contemporary best practice. The updated Charters
will be made available via Novogen's website as they are
reviewed.
AU$ 1.8 Million Annualised Reduction in Operating Expenses
Novogen also indicated in June that it expected to realize
additional cost savings through a review of business operations.
Approximately $1.8 million of
annualized savings have been identified in operating expenses,
principally comprising reduction in consultant expenditure,
optimization of the intellectual property portfolio, management of
occupancy expenses, and a modest reduction in headcount.
These measures have already been substantially implemented, and
will allow a greater allocation of the Company's resources to
progressing the clinical trials of GDC-0084 and Cantrixil.
In Response to Shareholder Feedback, ADR Proxies to Remain
Unvoted
As announced on 11 August, Novogen has instructed its Depository
Holder, BNY Mellon, not to direct unvoted proxies from American
Depository Receipts (ADRs) in future general meetings of
shareholders.
During its consultation with shareholders, the Company has
become aware that this practice has become a cause for concern
among some shareholders. While the Company has at all times acted
in good faith and under independent legal advice on these matters,
it recognizes the concerns of shareholders and has accordingly instructed BNY Mellon not to so
direct unvoted proxies in future meetings.
Compliance with NASDAQ Listing Rules Confirmed
On 31 May 2017, Novogen received
notification from NASDAQ requiring the Company to ensure that the
share price of its NASDAQ-listed securities remained above
US$ 1 per share, in accordance with
NASDAQ Listing Rules. In response to this, Novogen announced on
4 July 2017 that it had changed the
ratio at which ADRs consolidate underlying Australian shares from
25:1 to 100:1.
The change did not affect the total number of shares on issue,
but served to increase the number of ASX shares that were
consolidated into each ADR fourfold, with a commensurate increase
in the price of the ADRs on NASDAQ.
In a letter dated 28 July 2017 and
received on 29 July, NASDAQ confirmed that, as a result of these
measures, Novogen was compliant with NASDAQ Listing Rule 5550(a)(2)
and that the matter was now closed.
Novogen Chairman, Iain Ross,
commented "recent efforts have significantly improved the
efficiency of Novogen as a business, and will allow us to better
devote our resources to delivering on the substantial value that
resides in our pipeline.
The company has listened carefully to the feedback of
shareholders, and has shown its commitment to delivering
shareholder value in accordance with the best principles of
corporate governance."
About Novogen Limited
Novogen Limited (ASX: NRT; NASDAQ: NVGN) is an emerging
oncology-focused biotechnology company, based in Sydney, Australia. Novogen has a portfolio of
development candidates, diversified across several distinct
technologies, with the potential to yield first-in-class and best-
in-class agents in a range of oncology indications.
The lead program is GDC-0084, a small molecule inhibitor of the
PI3K / AKT / mTOR pathway, which is being developed to treat
glioblastoma multiforme. Licensed from Genentech in late 2016,
GDC-0084 is anticipated to enter phase II clinical trials in 2017.
A second clinical program, TRXE-002-01 (Cantrixil) commenced a
phase I clinical trial in ovarian cancer in December 2016. In addition, the company has
several preclinical programs in active development, the largest of
which is substantially funded by a CRC-P grant from the Australian
Federal Government.
For more information, please visit: www.novogen.com
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SOURCE Novogen Limited