DGAP-News: Cytos Biotechnology Ltd announces Q3 Financial Results and convenes a Bondholders' meeting to secure a going concern
(firmenpresse) - EquityStory AG-News: Cytos Biotechnology AG / Key word(s): Capital
Reorganisation
Cytos Biotechnology Ltd announces Q3 Financial Results and convenes a
Bondholders' meeting to secure a going concern
20.10.2011 / 19:21
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- Cash burn in line with expectations
- Production of material to enable Phase IIb studies with CYT003-QbG10
on-going
- Progress made on strategic options review
- Bond restructuring proposal allows the bondholders to recover up to
100% of the convertible bonds and significantly improves the
bondholders' prospect to participate in the equity upside potential
- Going concern of Cytos Biotechnology Ltd and preservation of the value
of its key asset CYT003-QbG10 are highly dependent on a successful
convertible bonds restructuring
Schlieren (Zurich), Switzerland, October 20, 2011 - Cytos Biotechnology Ltd
(SIX: 'CYTN'; the 'Company'; 'Cytos') today presented its third quarter
financial results as well as its proposed financial restructuring of the
outstanding convertible bonds and convenes a bondholders' meeting on
November 10, 2011 in Schlieren/Switzerland.
Key Financial Results:
- Cash, cash equivalents, financial assets and trade receivables amount
to CHF 33.7 million as per September 30, 2011
- The outstanding nominal value of the convertible bonds amounts to CHF
38.8 million as per September 30, 2011
- Gross cash used in operations was CHF 1.7 million on average per month
for the first nine months of 2011
- Revenues of CHF 1.3 million, Net Loss of CHF 16.1 million for the first
nine months of 2011
The detailed Q3 Financial Report can be downloaded at
http://www.cytos.com/userfiles/file/Cytos_Q3_2011_E.pdf
Progress on strategic options to date:
Assisted by an internationally renowned advisor, Cytos considered in the
past months all its strategic options which also determined the timing of
the announcement and the implementation of its restructuring measures
announced on August 17, 2011. During this process, the Company recognized
that the likelihood of realizing a solution which includes the full
redemption of the convertible bonds can be substantially increased with
additional time gained by a financial restructuring of the convertible
bonds including a partial repayment at maturity in February 2012 as well as
an extension of the remainder.
Key Considerations:
- According to present financial plans and taking into consideration the
implication from the recently announced restructuring the financing gap
at maturity of the convertible bonds in February 2012 amounts to around
CHF 17 million.
- Access to new financial means for a small biotech company without
sustainable revenues remains very challenging in the current financial
market environment.
- With the planned restructuring of its convertible bonds, liquidity of
Cytos shall be secured to continue operations.
Key elements of the proposed convertible bonds restructuring:
- Cash payout of 50% nominal per outstanding convertible bond on February
20, 2012
- Extension of the maturity of the remaining 50% nominal of outstanding
convertible bonds for three years
- Doubling of the coupon and suspension of interest payments
- More than twenty-fold reduction of the conversion price, i.e. from CHF
175 to CHF CHF 8.21
- Amendment of bond assurances
A successful financial restructuring of the CHF 70 million convertible
bonds maturing on February 20, 2012 is essential for the Company to remain
going concern and to facilitate a potential value maximization of Cytos'
lead product CYT003-QbG10.
In order to formalize the restructuring, a bondholders' meeting is
scheduled to take place on November 10, 2011 in Schlieren/Switzerland.
The notice to the bondholders as well as the detailed content of the
financial restructuring of the outstanding convertible bonds can be
downloaded at www.cytos.com/bondrestructuring
The elements of the convertible bonds restructuring have been elaborated
carefully together with Cytos' financial advisor, Neue Helvetische Bank,
and represent, in the view of the Board of Directors and the management, a
fair and reasonable proposal which serves to sustain operations of Cytos,
thereby gaining the additional time needed to focus on its key asset
CYT003-QbG10 and to further explore strategic options.
The Board of Directors and the Management strongly support approving the
financial restructuring which is in the best interest of bondholders,
shareholders, and other stakeholders and will do its utmost to realize a
solution that enables Cytos to fully repay the extended convertible bonds.
In addition, value creating measures with CYT003-QbG10 and efforts on
strategic options will further be pursued. The proposed restructuring will
not need shareholders approval.
For further information please contact:
Cytos Biotechnology Ltd
Harry Welten
Chief Financial Officer
Tel.: +41 44 733 46 46
e-Mail: harry.welten(at)cytos.com
Website: www.cytos.com
About Cytos Biotechnology Ltd
Cytos Biotechnology Ltd is a Swiss public biotechnology company that
specializes in the discovery, development and commercialization of a new
class of biopharmaceutical products - the Immunodrugs(TM). Immunodrugs(TM)
are intended for use in the treatment and prevention of common chronic
diseases, which afflict millions of people worldwide. Immunodrugs(TM) are
designed to instruct the patient's immune system to produce desired
therapeutic antibody or T cell responses that modulate chronic disease
processes. The Immunodrug(TM) candidates are developed both in-house and
together with Novartis, Pfizer and Pfizer Animal Health. Founded in 1995 as
a spinoff from the Swiss Federal Institute of Technology (ETH) in Zurich,
the Company is located in Schlieren (Zurich). Cytos Biotechnology Ltd is
listed on the main segment at the SIX Swiss Exchange (SIX:'CYTN').
This foregoing press release may contain forward-looking statements that
include words or phrases such as 'are intended for', 'are designed to',
'could be', 'will' or other similar expressions. These forward-looking
statements are subject to a variety of significant uncertainties, including
scientific, business, economic and financial factors, and therefore actual
results may differ significantly from those presented. There can be no
assurance that any further therapeutic entities will enter clinical trials,
that clinical trial results will be predictive for future results, that
therapeutic entities will be the subject of filings for regulatory
approval, that any drug candidates will receive marketing approval from the
U.S. Food and Drug Administration or equivalent regulatory authorities, or
that drugs will be marketed successfully. Against the background of these
uncertainties readers should not rely on forward-looking statements. The
company assumes no responsibility to update forward-looking statements or
adapt them to future events or developments. This document does not
constitute an offer or invitation to subscribe or purchase any securities
of Cytos Biotechnology Ltd.
End of Corporate News
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20.10.2011 News transmitted by EquityStory AG.
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Language: English
Company: Cytos Biotechnology AG
Wagistr. 25
8952 Schlieren
Switzerland
Phone: +41 44 733 4747
Fax: +41 44 733 4740
E-mail: info(at)cytos.com
Internet: www.cytos.com
ISIN: CH0011025217, CH0029060735
Swiss Security Number: -
Listed: Regulierter Markt in SIX; Freiverkehr in
Berlin, München, Stuttgart; Open Market in
Frankfurt
End of News EquityStory AG News-Service
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142979 20.10.2011
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