Presented by Biovays…

Metabasis Therapeutics (MBRX) put out a press release at 2AM EST stating they had indeed laid off most of its staff — 45 to be exact. Our tipster filled us in yesterday afternoon re the pink slips and we broke the story last night – before the official press release.

There’s also been concerns regarding the company’s cash status as laid off workers have rushed to MBRX’s bank (BofA) to cash their three-week severance checks. The company did say in its last earnings statement it had about $11M left, so we’re not sure if the cash stockpile has significantly dwindled since.

Our tipster added that employees were upset with the severance and were “looking into the legalities” of the axes, although we haven’t confirmed this. People are upset that they had worked their for years and were not given a bigger payout.

Anyway, here’s what MBRX’s statement said:

“The restructuring was necessitated by the Company’s difficulty in raising sufficient capital from a financing or other sources, and is intended to further preserve cash and reduce ongoing operating expenses, providing the Board of Directors additional time to evaluate strategic alternatives. The seven remaining employees, primarily consisting of the current officers of the Company, will assist the Board of Directors in assessing and potentially implementing these strategic alternatives. However, in the event the Company is unable to raise capital in the near-term it may be forced to cease its operations entirely.”

Ouch.

MBRX also said it received a delisting notice from the Nasdaq for non-compliance, under which the company has 15 calendar days to submit a plan for regaining compliance (stockholders’ equity requirement of at least $2.5M).

The Graveyard soon?

Anonymous Tip? Comments? Contact us at: hr@iguanabio.com

Image from textually

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