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Nexia Initiates a Cost-Reduction Program Tuesday May 6, 9:00 am ET MONTREAL, May 6 /CNW Telbec/ - Nexia Biotechnologies Inc. (TSX:NXB - News) today announced that it is implementing a cost reduction program to preserve financial resources as a result of the recent delays in the development of a commercial spinning process for BioSteel(R). The implementation of this program involves the reduction in: the number of employees by approximately 30%, farm operations, early R&D programs, and administrative and other non- essential expenses. Upon completion of the restructuring program, Nexia expects that its monthly net cash outflow will be reduced from $1 million to approximately $600,000 thereby extending its financial resources until October 2005. All core activities associated with our BioSteel(R) spinning development program and our Protexia(TM) program will remain intact. "The changes that we announced today were difficult in light of the dedication and commitment of many of the affected people in building Nexia to what it is today. However, such changes are necessary to secure the substantial potential represented by our BioSteel(R) and Protexia(TM) programs. In the face of unexpected technical delays, management believes that the most conservative approach is to ensure that sufficient financial and technical resources are available to achieve our mission-critical milestones. We are absolutely committed to the success of these programs," commented Dr. Jeffrey D. Turner, President and CEO of Nexia. Nexia will concentrate its efforts on developing a commercial spinning process for BioSteel(R) and advancing the Protexia(TM) program as rapidly as possible. Although the delay in the development of a spinning process has impacted its BioSteel(R) program, the Company is confident that the required fibre properties will be achieved. Regarding the Protexia(TM) program, the Company has recently achieved several key milestones. These milestones included obtaining funding from the US Army, Agreements with both the Canadian and US Armies to evaluate Protexia(TM) in both in vitro and in vivo systems, and the expression of biologically active protein in the milk of several transgenic goats. The funding obtained from the US Army amounting to $3.94 million and is dedicated towards studies to support moving the program into development. "Nexia`s Management Team closely monitors expenditures and when unanticipated technical challenges arose they worked with their experienced Board of Directors to make the appropriate adjustment to the Operating Plan. The Board of Directors is confident that this restructuring program is prudent and necessary to build value for our shareholders," noted Mr. William C. Garriock, Chair of Nexia`s Board of Directors. About Nexia Nexia develops and manufactures complex recombinant proteins for use as biomaterials and biopharmaceutical products with medical and industrial applications. The Company`s lead group of products under development is BioSteel(R) recombinant spider silk for use in medical and industrial applications. Protexia(TM) is Nexia`s newest program in our product development pipeline. For more information, please visit Nexia`s website at www.nexiabiotech.com . Except for the historical information presented herein, matters discussed herein may constitute forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements preceded by, followed by, or that include the words "believes"; "anticipates"; "intends"; "plans"; "expects"; "estimates"; or similar statements are forward-looking statements. Such statements reflect management`s current views and are based on certain assumptions. Actual results could differ materially from those currently anticipated as a result of a number of factors, including risks and uncertainties discussed in Nexia`s filings with Canadian regulatory authorities. An additional business risk associated with the Protexia(TM) program relates to the fact that large purchases are expected to be made from a few customers. Changes in demand from these customers could significantly affect this program. There can be no assurance that such development efforts will succeed, that such products will receive required regulatory clearance or that, such products would ultimately achieve commercial success. For further information Media Contact : Jeffrey D. Turner, Ph.D., President and CEO, Nexia Biotechnologies Inc., (450) 424-8920, jturner@nexiabiotech.com Investor Relations Contact : Andrea Gilpin, Ph.D., Director, Corporate Development & Investor Relations,Nexia Biotechnologies Inc., (450) 424-8918, agilpin@nexiabiotech.com Source: Nexia Biotechnologies Inc. |
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| aus der Diskussion: | Nexia Biotech- große Zukunftsaussichten |
| Autor (Datum des Eintrages): | Bombenleger (06.05.03 15:16:56) |
| Beitrag: | 11 von 43 (ID:9369511) |
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