Cytos Biotechnology Ltd to wind down Key Operational Activities Schlieren, Switzerland - May 5, 2014 - Cytos Biotechnology AG (SIX: CYTN) today announced that it has entered into agreements with major creditors resulting in a reduction of liabilities and provisions of the company of approximately CHF 5 million. In addition, the four convertible loan note holders Abingworth, Amgen, venBio and Aisling have agreed to subordinate part of their loan notes to ordinary creditors. The loan notes will remain senior to the convertible bonds. In the aggregate, these measures allow for a continued operation of the company. In order to reduce future expenses, Cytos is winding down key operational activities, in particular related to the development and manufacturing of CYT003. The procedure for a mass dismissal of the employees has been concluded. As a result, 24 employees have received a notice of termination of their employment agreement, taking effect as of July 31, 2014. As a further cost saving measure, the size of the company's board of directors will be reduced to four directors. Drs. Deniz and Krieg and Mr. Brooke have agreed to step down as board members effective May 31, 2014. The company is also seeking to engage in … Continue reading
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