Spexis expects that audit of its 2023 financials will not be completed by 31 July 2024, provides status update relating to the Company’s moratorium and changes to its Executive Committee.

Spexis AG / Key word(s): Miscellaneous

22-Jul-2024 / 07:15 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

Ad hoc announcement pursuant to Art. 53 LR

Allschwil, Switzerland, 22 July 2024

Spexis expects that audit of its 2023 financials will not be completed by 31 July 2024, provides status update relating to the Company’s moratorium and changes to its Executive Committee.

Spexis AG (SIX: SPEX), a clinical-stage biopharmaceutical company focused on macrocycle therapeutics for rare diseases and oncology, today announced that the audit process of its financials for 2023 will not be completed by 31 July 2024 and therefore expects a temporary suspension of trading of the Company’s shares by the SIX Exchange Regulation AG to commence sometime afterwards.

Relevant background to the above is provided as follows: 

1. Discussions with regarding the treatment of assets subject to the provisional debt moratorium and the enforcement actions undertaken by Spexis' major creditor (SPRIM Global Investments, as announced on November 29, 2023, and which the Company alleges are wrongful) – continue but are now compounded by the termination of the license of ColiFin® by PARI Pharma GmbH to Enbiotix, Inc., as communicated on 8 July 2024;
2. As a result of these ongoing assessments, audited financials for 2023 will not be completed by 31 July 2024. Therefore, the Company expects a temporary suspension of trading of the Company’s shares by SIX as already implemented a first time on 3 June 2024 and which was reversed upon appeal by the Company resulting in resumption of trading on 12 June 2024.
3. The Company expects that upon publication of its audited 2023 financial statements at a later stage, that trading of the Company’s shares would be resumed in SIX Swiss Exchange. 

The Company also provides an update to its moratorium status as follows:  Currently, the Company is in an extended provisional moratorium until August 8, 2024, with a hearing scheduled on 23 July 2024 with the Basel-Landschaft West court to consider the Company’s request for the granting of a definitive moratorium status.  In connection with the same, and pursuant to a bridge financing agreed-upon between the Company and the investment holding company of its Chair & CEO, Jeff Wager, MD and ongoing discussions with potential investors/partners, the Company and its moratorium administrator together intend to request  to the court that it grant said definitive moratorium status in light of the Company’s  ongoing fundraising and corporate partnering prospects, which it asserts provides potential for a better outcome for creditors than an immediate liquidation.  This being said, absent any financing secured during the term of any requested definitive moratorium grant, or if the court has another assessment of the current prospects of the Company’s financial recovery, there is a substantial risk that the Company will have to be either liquidated or be declared bankrupt.

Finally, effective 1 August 2024, Martin Jakobovic, currently Head of Finance and Acting Chief Financial Officer, has decided to pursue new career opportunities outside of the Company.  In his place, Samuel Scheibler, currently Controller of Spexis, will assume the role of Head of Finance, with Muriel Fleming, currently Global Head of HR, to assume the role and title of Chief Administrative Officer and Acting Chief Financial Officer.  Jeff Wager MD, Chair & CEO of Spexis, commented on these changes as follows, “I wish to thank Martin for his significant contributions during a particularly difficult environment given our moratorium status and the current biotech climate in general. We wish him well in his future endeavors. In addition, I welcome the elevation of Muriel and Samuel in their added roles given their similarly significant contributions during this time.  Together, we will work diligently as a close-knit team to pursue an exit from moratorium for the benefit of both creditors and shareholders.” 
 

About Spexis

Spexis (SIX: SPEX) is a clinical-stage biopharmaceutical company based in Allschwil, Switzerland, focused on macrocycle therapeutics for rare diseases and oncology. For further information please visit: www.spexisbio.com.
 

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Disclaimer

This press release contains forward-looking statements which are based on current assumptions and forecasts of Spexis management. Known and unknown risks, uncertainties, and other factors could lead to material differences between the forward-looking statements made here and the actual development, in particular Spexis’ results, financial situation, and performance. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Spexis disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.