Aeterna Zentaris Announces Shareholder Approval of Share Consolidation

Rhea-AI Summary

Aeterna Zentaris Inc. (NASDAQ: AEZS) has announced the approval of a Share Consolidation at a ratio of one post-consolidation share for every twenty-five pre-consolidation shares. This decision was made during the reconvened annual meeting of shareholders held on July 15, 2022. The company plans to file articles of amendment shortly, pending approval from the Toronto Stock Exchange and NASDAQ. Aeterna is known for its focus on developing pharmaceutical products and has achieved regulatory approval for its lead product, macimorelin, for adult growth hormone deficiency.

Positive

• Approval of Share Consolidation may enhance share price by reducing the number of outstanding shares.
• Aeterna's lead product, macimorelin, has received FDA and European Commission approval, indicating successful commercialization potential.

Negative

• Share Consolidation may dilute shareholder value if not accompanied by significant business performance.
• Dependence on macimorelin for revenue and growth could pose risks if market conditions change.

TORONTO, ONTARIO, July 15, 2022 (GLOBE NEWSWIRE) -- Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZS) ("Aeterna" or the "Company"), a specialty biopharmaceutical company developing and commercializing a diversified portfolio of pharmaceutical and diagnostic products, today announced that the proposed consolidation of the Company’s shares (the “Share Consolidation”) was approved at its reconvened annual meeting of shareholders (the “Meeting”) held today.

Following the Meeting, the Company’s board of directors approved the Share Consolidation on the basis of one post-Share Consolidation share for every twenty-five pre-Share Consolidation shares. The Company expects to file articles of amendment to implement the Share Consolidation in the coming days. The Share Consolidation remains subject to the approval of the Toronto Stock Exchange and the Nasdaq Capital Market.

For additional information regarding the Share Consolidation, please refer to the Company's Notice of Annual General and Special Meeting of Shareholders and Management Information Circular dated May 16, 2022, which are available on SEDAR at www.sedar.com or EDGAR at www.sec.gov.

About Aeterna Zentaris Inc.

Aeterna Zentaris is a specialty biopharmaceutical company developing and commercializing a diversified portfolio of pharmaceutical and diagnostic products focused on areas of significant unmet medical need. The Company's lead product, macimorelin (Macrilen^™; Ghryvelin^®), is the first and only U.S. FDA and European Commission approved oral test indicated for the diagnosis of adult growth hormone deficiency (AGHD). The Company is leveraging the clinical success and compelling safety profile of macimorelin to develop it for the diagnosis of childhood-onset growth hormone deficiency (CGHD), an area of significant unmet need, in collaboration with Novo Nordisk.

Aeterna Zentaris is dedicated to the development of therapeutic assets and has recently taken steps to establish a growing pre-clinical pipeline to potentially address unmet medical needs across a number of indications, including neuromyelitis optica spectrum disorder (NMOSD), Parkinson's disease (PD), hypoparathyroidism and amyotrophic lateral sclerosis (ALS; Lou Gehrig's disease). Additionally, the Company is developing an oral prophylactic bacterial vaccine against SARS-CoV-2 (COVID-19) and Chlamydia trachomatis.

For more information, please visit www.zentaris.com and connect with the Company on Twitter, LinkedIn and Facebook.

Forward-Looking Statements

This press release contains statements that may constitute forward-looking statements within the meaning of U.S. and Canadian securities legislation and regulations and such statements are made pursuant to the safe-harbor provision of the U.S. Securities Litigation Reform Act of 1995. Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "potential," "possible," and similar expressions. Such statements, based as they are on current expectations of management, inherently involve numerous risks, uncertainties and assumptions, known and unknown, many of which are beyond our control. Forward-looking statements in this press release include, but are not limited to, those relating to: the impact and timing of the Consolidation.

Forward-looking statements involve known and unknown risks and uncertainties, and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and uncertainties include, among others, results from ongoing or planned pre-clinical studies of our products under development may not be successful or may not support advancing the product to human clinical trials; our ability to raise capital and obtain financing to continue our currently planned operations; our now heavy dependence on the success of macimorelin (sold under the trade names Macrilen^® in the United States and Ghryvelin^™ in the EU) and related out-licensing arrangements and the continued availability of funds and resources to successfully commercialize the product, including our heavy reliance on the success of the license agreement and the amended license agreement (collectively the Novo Amended License Agreement) and our license agreement with Consilient Health; the global instability due to the global pandemic of COVID-19 and the war in Ukraine and the resulting geopolitical instability, and its unknown potential effect on our planned operations; our ability to enter into out-licensing, development, manufacturing, marketing and distribution agreements with other pharmaceutical companies and keep such agreements in effect; and our ability to continue to list our shares on the NASDAQ. Investors should consult our quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties, including those risks discussed in our Annual Report on Form 20-F, under the caption "Risk Factors". Given the uncertainties and risk factors, readers are cautioned not to place undue reliance on these forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, unless required to do so by a governmental authority or applicable law.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Toronto Stock Exchange accepts no responsibility for the adequacy or accuracy of this release.

Investor Contact:

Jenene Thomas
JTC Team
T (US): +1 (833) 475-8247
E: aezs@jtcir.com

FAQ

What is the Share Consolidation for Aeterna Zentaris (AEZS)?

Aeterna Zentaris announced a Share Consolidation of one post-consolidation share for every twenty-five shares, approved on July 15, 2022.

When will the Share Consolidation for AEZS take effect?

The implementation of the Share Consolidation is expected to occur following the filing of articles of amendment, pending stock exchange approvals.

Why did Aeterna Zentaris approve a Share Consolidation?

The Share Consolidation aims to potentially enhance the company's share price and appeal to investors by reducing the number of outstanding shares.

What is macimorelin, the lead product of Aeterna Zentaris (AEZS)?

Macimorelin is the first approved oral test for diagnosing adult growth hormone deficiency, demonstrating Aeterna's capability in developing successful pharmaceutical products.