Medicenna Announces Nasdaq Delisting and Cutback of Management Team
The Company informed Nasdaq that it would not appeal the delisting decision or try to regain compliance by executing a reverse stock split. The Company’s common shares will continue to trade on the
“To better position Medicenna for the benefit of all our shareholders, we undertook a thorough and thoughtful review of our cost structure, including costs associated with being a Nasdaq-listed company,” said
After careful consideration, the Board of Directors of Medicenna (the “Board”) determined that it is in the overall best interests of the Company not to appeal Nasdaq’s delisting decision and delist its common shares from Nasdaq. The Board’s decision was based on several factors, including the continuing volatility of the financial markets in the life science sector and, accordingly, in the Company’s current share price and market value, and an analysis of the benefits of continued listing on Nasdaq weighed against the regulatory burdens and costs associated with maintaining such listing. The Company anticipates significant financial savings as a result of this decision. With the common shares concurrently trading on the TSX, the Company believes that the significant costs associated with a continued Nasdaq listing, as well as the administrative burdens and extensive amount of management’s time, attention and resources expended on regulatory compliance to maintain a Nasdaq listing, are not justified at this time. Following the delisting of the Company’s common shares on the Nasdaq, the Company will also seek to have its common shares traded on the OTC Markets as soon as possible thereafter.
Nasdaq has notified the Company that trading of its common shares will be suspended as of the opening of business on
As previously announced, on
Cutback to Management Team
In connection with the Nasdaq delisting and in effort to further preserve capital, the Board decided to reduce the size of its management team as well as its presence in
Medicenna is a clinical-stage immunotherapy company focused on developing novel, highly selective versions of IL-2, IL-4 and IL-13 Superkines and first in class class-empowered superkines. Medicenna’s long-acting IL-2 Superkine, MDNA11, is a next-generation IL-2 with superior CD122 (IL-2 receptor beta) binding without CD25 (IL-2 receptor alpha) affinity thereby preferentially stimulating cancer-killing effector T cells and NK cells. Medicenna’s IL-4 Empowered Superkine, bizaxofusp (formerly MDNA55), has been studied in 5 clinical trials, including a Phase 2b trial for recurrent GBM, the most common and uniformly fatal form of brain cancer. Bizaxofusp has obtained FastTrack and Orphan Drug status from the FDA and FDA/EMA, respectively. Medicenna’s early-stage BiSKITs™ program (Bifunctional SuperKine ImmunoTherapies) is designed to enhance the ability of Superkines to treat immunologically “cold” tumors.
This news release contains forward-looking statements within the meaning of applicable securities laws that relate to the future operations of the Company, plans and projections and other statements that are not historical facts, including, without limitation, statements on the stock market volatility, the timing of the delisting of the Company’s common shares from Nasdaq, the anticipated cost savings in connection with such delisting, the estimated costs associated with maintaining a dual listing, the anticipated listing of the Company’s common shares on the OTC Markets, and the Company’s requirements for, and its ability to obtain, future funding on favourable terms or at all. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expect”, “believe”, “seek”, “potentially” and similar expressions and are subject to risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include the risks detailed in the latest Annual Report on Form 20-F of the Company and in other filings made by the Company with the applicable securities regulators from time to time in
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date hereof and except as required by law, we do not intend and do not assume any obligation to update or revise publicly any of the included forward-looking statements.
Source: Medicenna Therapeutics Corp.