GENEVA, July 15, 2024--(BUSINESS WIRE)--Regulatory News:
GeNeuro (Euronext Paris : CH0308403085 - GNRO), a biopharmaceutical company developing new treatments for neurodegenerative and autoimmune diseases such as multiple sclerosis (MS), amyotrophic lateral sclerosis (ALS) and the severe neuropsychiatric consequences of COVID-19 (post-COVID or COVID-Long), announces that it will submit today to the Geneva Court of First Instance a request for a debt moratorium to restructure its debts and find solutions for the continuity of its activities in the interests of all stakeholders.
This follows the announcement, on June 28, 2024, that the Phase 2 clinical trial GNC-501, testing temelimab versus placebo in patients with post-COVID-19 neuropsychiatric syndromes, had failed to meet the study's primary endpoint, as well as the majority of secondary endpoints. The Company will continue to analyze full results as they become available, including additional biomarkers. Nevertheless, in view of the Company's over-indebtedness, and after an in-depth analysis of the situation, including the cost savings measures announced on June 28, 2024, and of the alternatives available, GeNeuro's Board of Directors has decided that it was necessary to notify the over-indebtedness and apply for a moratorium to enable the restructuring of its debts and the development of solutions to rectify its situation. Further information will be provided following the Court of First Instance's decision on this request. During this moratorium period, the Company will enter into negotiations with its creditors, while continuing to seek ways to recapitalize, advance and/or monetize its assets under development, targeting multiple sclerosis and amyotrophic lateral sclerosis. It will also leverage its HERV platform to create value for all its stakeholders.
It should be noted that the application for this moratorium only concerns GeNeuro SA, the Swiss parent company of the GeNeuro Group, and that the activities of its French R&D subsidiary, GeNeuro Innovation SAS, are continuing as of the date hereof and are not currently concerned by these proceedings or by equivalent collective proceedings under French law.
About GeNeuro
GeNeuro's mission is to exploit the biology of human endogenous retroviruses ("HERVs") to develop safe and effective treatments for neurodegenerative diseases, by neutralizing the pathogenic factors encoded by HERVs, which account for 8% of human DNA.
GeNeuro is based in Geneva, Switzerland, and has R&D facilities in Lyon, France.
About the request for a debt restructuring moratorium
Under Swiss law (the law applicable to GeNeuro SA), a moratorium, is a preventive measure in bankruptcy proceedings. This procedure is designed to enable a company in financial difficulty to restructure its debts with its creditors, with the aim of finding measures to stabilize its financial situation . The moratorium will protect the Company from creditor proceedings while it will works with the "commissaire au sursis", an independent expert appointed by the judge to supervise the process, help draw up a possible composition plan and validate possible reorganization measures. This process may result in a recapitalization of the Company, a restructuring of its debts or a sale of some of its assets, with the caveat that if this fails, the Company may be forced into bankruptcy.
The aim of this procedure is to reach an agreement that will enable the Company to continue its operations while satisfying its creditors.
Forward-looking statements: This document contains forward-looking statements and estimates with respect to the financial condition, results of operations, strategy, plans and future performance of GeNeuro and the market in which it operates. Some of these statements, forecasts and estimates may be identified by the use of words such as, without limitation, "believes", "anticipates", "expects", "projects", "plans", "seeks", "estimates", "may", "will" and "continue" and similar expressions. They include all matters that are not historical facts. Such statements, forecasts and estimates are based on various assumptions and assessments of known and unknown risks, uncertainties and other factors, which were believed to be reasonable when they were made but which may not prove to be correct. Actual events are difficult to predict and may depend on factors beyond the company's control. Consequently, GeNeuro's actual results, financial condition, performance or achievements, or industry results, may differ materially from future results, performance or achievements as expressed or implied by such statements, forecasts and estimates Given these uncertainties, no representation is made as to the accuracy or fairness of such forward-looking statements, forecasts and estimates. Furthermore, the forward-looking statements, forecasts and estimates are valid only as of the date of publication of this document. GeNeuro disclaims any obligation to update any such forward-looking statements, forecasts or estimates to reflect any change in the Company's expectations with regard thereto, or any change in events, conditions or circumstances on which any such statements, forecasts or estimates are based, except as required by French law.
