Conatus to Explore Strategic Alternatives and Implement Restructuring Plan
June 24 2019 - 04:06PM
Conatus Pharmaceuticals Inc. (Nasdaq:CNAT) today announced that the
company has engaged Oppenheimer & Co., Inc., as its financial
advisor to assist in the exploration and evaluation of strategic
alternatives to enhance shareholder value. There can be no
assurance of a successful outcome from these efforts, or of the
form or timing of any such outcome. The company does not intend to
make any further disclosures regarding the strategic review process
unless and until a specific course of action is approved by the
company’s Board of Directors.
In order to extend its resources, Conatus is implementing a
restructuring plan that includes reducing staff by approximately
40% and suspending development of its inflammasome disease
candidate, CTS-2090. The company has updated its financial guidance
and is projecting a year-end 2019 net balance of cash, cash
equivalents and marketable securities of between $10 million and
$15 million.
“We remain excited by the potential of CTS-2090 as a uniquely
positioned inflammasome disease compound,” said Steven J. Mento,
Ph.D., President, Chief Executive Officer and co-founder of
Conatus. “However, we must preserve our remaining resources to
extend our cash runway to better explore strategic alternatives
that can benefit shareholders. Although we are halting development
activities for CTS-2090, we plan to continue to explore a variety
of opportunities to advance this compound.”
Forward-Looking Statements This press release
contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical facts contained in
this press release are forward-looking statements, including
statements: concerning or implying the company will
successfully complete a strategic alternative or that the company
will be able to enhance shareholder value; regarding the company’s
financial guidance; and regarding the exploration of opportunities
for CTS-2090. In some cases, you can identify forward-looking
statements by terms such as “may,” “will,” “should,” “expect,”
“plan,” “anticipate,” “could,” “intend,” “target,” “project,”
“contemplates,” “believes,” “estimates,” “predicts,” “potential” or
“continue” or the negative of these terms or other similar
expressions. These forward-looking statements speak only as of
the date of this press release and are subject to a number of
risks, uncertainties and assumptions, including, whether desirable
strategic alternatives can be identified, and the company’s ability
to conserve cash or to raise funds sufficient to complete a
strategic alternative. In addition, if the company does not or is
unable to retain certain remaining personnel, it may be difficult
to complete a transaction. The company’s existing or future
liabilities, including litigation, if any, could also be seen as
detrimental to any potential parties to a strategic
alternative. There can be no assurance that the company will
be able conserve sufficient cash, raise additional funding on
reasonable terms or at all, or complete any transaction. Other
risks regarding the company’s business are described in Conatus’
prior press releases and in the periodic reports it files with the
Securities and Exchange Commission. The events and
circumstances reflected in Conatus’ forward-looking statements may
not be achieved or occur and actual results could differ materially
from those projected in the forward-looking statements. Except as
required by applicable law, Conatus does not plan to publicly
update or revise any forward-looking statements contained herein,
whether as a result of any new information, future events, changed
circumstances or otherwise.
CONTACT: Alan EngbringConatus Pharmaceuticals
Inc.(858) 376-2637aengbring@conatuspharma.com
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