eFFECTOR Therapeutics Announces it will Wind Down Operations as it Seeks Strategic Alternatives and Expects to be Delisted from Nasdaq
June 24 2024 - 7:00AM
eFFECTOR Therapeutics, Inc. (NASDAQ: EFTR) today announced that the
Company has terminated its employees and will wind down it
operations, including seeking potential strategic alternatives for
the Company’s development programs. This decision was made at a
special meeting of the board of directors. Further, as previously
disclosed, the Company’s securities do not presently meet the
continued listing requirements of the Nasdaq Stock Market and its
securities would be subject to delisting if the Company fails to
regain compliance during the required compliance period. The
Company plans to voluntarily request a delisting of its securities
and expects its securities to be delisted in the near term.
The board of directors appointed Craig R.
Jalbert, age 62, as the Company’s CEO, President, Treasurer and
Secretary, and sole member of the board. Mr. Jalbert has served as
a principal of the Foxborough, Massachusetts accounting firm of
Verdolino & Lowey, P.C. since 1987. For over 30 years he has
focused his practice in distressed businesses and has served, and
continues to serve, in the capacities of officer and director for
numerous firms in their wind-down phases.
Forward-Looking
StatementseFFECTOR cautions you that statements contained
in this press release regarding matters that are not historical
facts are forward-looking statements. The forward-looking
statements are based on our current beliefs and expectations and
include, but are not limited to, plans to wind down our operations,
delist from Nasdaq and seek strategic alternatives. Actual results
may differ from those set forth in this press release due to the
risks and uncertainties inherent in our business, including,
without limitation: our lender declaring a default under our loan
and security agreement and accelerating all of our repayment
obligations, which we expect will exceed our current available
capital, and taking control of our pledged assets, which right to
repayment would be senior to the rights of the holders of our
common stock to receive any proceeds from any liquidation of the
company; the timing, progress and results of our planned wind down
and evaluation of strategic alternatives, including whether or not
the evaluation of alternatives results in any transaction or
additional value beyond our debt obligations; and other risks
described in our prior filings with the Securities and Exchange
Commission. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof,
and we undertake no obligation to update such statements to reflect
events that occur or circumstances that exist after the date
hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement, which is made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995.
Contacts:
Verdolino & Lowey, P.C.124 Washington
Street, Suite 101Foxboro, MA. 02035Phone -
508-543-1720Effector@vlpc.com
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