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| 8-K - Intellect Neurosciences, Inc. | v173890_8k.htm |
FOR
IMMEDIATE RELEASE
Intellect
Neurosciences, Inc. Announces Preliminary Agreement with Significant
Shareholders to Provide Interim Funding and Assist the Company in Efforts to
Secure Additional Financing
NEW YORK, NY, February 10, 2009
/PRNewswire/ — Intellect Neurosciences, Inc. (OTC Bulletin Board: ILNS)
-, a biopharmaceutical company focused on development of disease-modifying
therapeutic agents for Alzheimer's disease (“AD”), announced today that several
of its significant shareholders (the “Interested Shareholders”) have agreed in
principle to provide interim funding to the Company and assist the Company in
its efforts to restructure its balance sheet. The Company has
initiated discussions with the Interested Shareholders regarding a potential
equity financing to fund operations for a longer period than that covered by the
interim funding. The contemplated transactions are subject to negotiation and
execution of definitive agreements.
Appointment
of New Directors
In
connection with the contemplated financings, the Interested Shareholders will be
given the right to appoint three new members to a newly constituted Board of
Directors of the Company. Recently, the Company disclosed that its former
independent directors resigned their positions because of a lack of funding to
pay for directors and officers liability insurance. The Interested Investors
intend to nominate suitable candidates to fill the Board vacancies shortly. The
Company intends to seek the approval of its shareholders to a resolution
amending the Company’s certificate of incorporation to reduce the number of
seats on the Board of Directors to five members.
Management
Changes
Dr.
Daniel Chain has agreed to resign from his position as Chief Executive Officer
and assume the position of Chief Scientific Officer so that he may focus his
time on advancing the Company’s pipeline programs. He will remain Chairman of
the Board of Directors. Elliot Maza will remain President and CFO and a member
of the Board of Directors. The Interested Investors are assisting the Company in
its search for a new CEO with significant industry experience.
Mr. Maza
commented: "We are delighted that several of our significant stakeholders
recognize the value proposition inherent in Intellect’s intellectual property
and pipeline programs and are committing funds to assist us in stabilizing the
Company’s financial position.”
About
Intellect Neurosciences, Inc.
Intellect
Neurosciences, Inc. is a biopharmaceutical company engaged in the discovery and
development of disease-modifying therapeutic agents for the treatment and
prevention of Alzheimer's disease and other disorders. The Company has
underlying intellectual property assets, including several patent families
supporting its internal programs, and a pivotal patent estate regarding passive
AD immunotherapy. The Company granted a
non-exclusive, worldwide, royalty-bearing license to its
ANTISENILIN® monoclonal
antibody platform to Wyeth
and Elan
Pharma International Ltd. The
license grants rights to Wyeth and Elan under Intellect's patents with respect
to the development and sale of Bapineuzumab, a monoclonal antibody intended to
treat AD. Wyeth and Elan are currently testing Bapineuzumab in several thousand
Alzheimer's patients in a Phase 3 clinical trial. Recently, the Company
granted a similar non-exclusive license to another top tier global
pharmaceutical company. The Company’s drug product pipeline includes IN-OX1, a
brain-penetrating copper-binding antioxidant for treatment of Alzheimer’s and
other neurodegenerative conditions, which has been tested in Phase 1 clinical
trials; IN-N01, a humanized monoclonal antibody designed to promote the
clearance of soluble beta amyloid; and RECALL-VAX, a vaccine technology that has
potential to delay or prevent Alzheimer's disease in people who are at
risk.
Safe
Harbor Statement Regarding Forward-Looking Statements
The
statements in this release and oral statements made by representatives of
Intellect relating to matters that are not historical facts (including without
limitation those regarding future performance or financial results, the timing
or potential outcomes of research collaborations or clinical trials, any market
that might develop for any of Intellect's product candidates, the plans of
Intellect to obtain interim funding through the Note and additional equity
financing from, or with the assistance of, the Interested Shareholders, and the
sufficiency of Intellect's cash and other capital resources) are forward-looking
statements that involve risks and uncertainties, including, but not limited to,
the likelihood that actual performance or results could materially differ, that
future research will prove successful, the likelihood that any product in the
research pipeline will receive regulatory approval in the United States or
abroad, or Intellect's ability to fund such efforts with or without partners.
Intellect undertakes no obligation to update any of these statements. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as to the date hereof. Accordingly any forward-looking
statements should be read in conjunction with the additional risks and
uncertainties detailed in Intellect's filings with the Securities and Exchange
Commission, including those factors discussed under the caption "Risk Factors"
in Intellect's Annual Report on Form 10-K (file no. 333-128226) filed on October
13, 2009, and Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2009, filed on November 16, 2009.
For
additional information, please visit
http://www.intellectns.com.