Cibus Inc. Announces Realigned Organization to Advance its Commercial Opportunities
Cibus Inc. (Nasdaq: CBUS) has announced a restructuring and cost reduction plan, including a reduction in force (RIF), to optimize its business structure. The company expects to generate cost savings of approximately $10 million on an annualized run-rate basis and reduce monthly cash use by about 20% when fully implemented by early 2025.
The restructuring aligns with Cibus's focus on advancing its nearest-term commercial opportunities, particularly in herbicide-resistant traits in Rice, continuing development of its Soybean platform, and leveraging multi-crop traits including disease tolerance in Canola and Winter Oilseed Rape. The company will also pursue partner-funded projects opportunistically.
The RIF is expected to result in one-time charges of approximately $0.35 million in Q4 2024 for accrued vacation and severance. Cibus's CEO, Rory Riggs, stated that this restructuring is necessary for the company's transformation from an R&D-focused entity to a commercial-stage gene editing company in agriculture.
Cibus Inc. (Nasdaq: CBUS) ha annunciato un piano di ristrutturazione e riduzione dei costi, comprensivo di una riduzione del personale (RIF), per ottimizzare la sua struttura aziendale. L'azienda prevede di generare risparmi sui costi pari a circa 10 milioni di dollari su base annuale e ridurre l'utilizzo di liquidità mensile di circa 20% quando sarà completamente attuato entro la fine del 2025.
La ristrutturazione è in linea con l'obiettivo di Cibus di promuovere le sue opportunità commerciali di più immediato interesse, in particolare nei tratti resistenti agli erbicidi nel riso, continuando lo sviluppo della sua piattaforma di soia e sfruttando tratti multi-colturali, tra cui tolleranza alle malattie nella colza e nel rafano invernale. L'azienda perseguirà anche progetti finanziati da partner in maniera opportunistica.
La RIF dovrebbe comportare oneri una tantum di circa 0,35 milioni di dollari nel quarto trimestre del 2024 per ferie accumulate e indennità di licenziamento. Rory Riggs, CEO di Cibus, ha dichiarato che questa ristrutturazione è necessaria per la trasformazione dell'azienda da entità focalizzata sulla ricerca e sviluppo a una società di editing genetico in fase commerciale nell'agricoltura.
Cibus Inc. (Nasdaq: CBUS) ha anunciado un plan de reestructuración y reducción de costos, que incluye una reducción de personal (RIF), para optimizar su estructura empresarial. La empresa espera generar ahorros en costos de aproximadamente 10 millones de dólares en base a una tasa anualizada y reducir el uso mensual de efectivo en aproximadamente 20% cuando se implemente por completo a principios de 2025.
La reestructuración se alinea con el enfoque de Cibus en avanzar en sus oportunidades comerciales más cercanas, particularmente en rasgos resistentes a herbicidas en arroz, continuar el desarrollo de su plataforma de soya, y aprovechar rasgos multicultivo, incluyendo tolerancia a enfermedades en colza y rape de invierno. La empresa también buscará proyectos financiados por socios de manera oportunista.
Se espera que la RIF resulte en cargos únicos de aproximadamente 0,35 millones de dólares en el cuarto trimestre de 2024 por vacaciones acumuladas y indemnización. Rory Riggs, CEO de Cibus, afirmó que esta reestructuración es necesaria para la transformación de la empresa de una entidad enfocada en I+D a una empresa de edición genética en fase comercial en agricultura.
Cibus Inc. (Nasdaq: CBUS)는 사업 구조를 최적화하기 위해 인력 감축(화재 감축 통제, RIF)을 포함한 구조 조정 및 비용 절감 계획을 발표했습니다. 이 회사는 2025년 초 완전 시행 시 약 1천만 달러의 비용 절감 효과와 월 현금 사용량을 약 20% 줄일 것으로 예상하고 있습니다.
이번 구조 조정은 Cibus가 벼의 제초제 저항형 특성, 콩 플랫폼의 지속적인 개발, 유채 및 겨울유채에서의 질병 내성을 포함한 여러 작물 특성을 활용하는 즉각적인 상업 기회를 발전시키려는 중점과 일치합니다. 회사는 또한 기회가 있을 때 파트너 자금 지원 프로젝트를 추구할 것입니다.
RIF로 인해 2024년 4분기에는 약 35만 달러의 한 번의 비용이 발생할 것으로 예상되며, 이는 휴가와 퇴직금에 대해 누적된 금액입니다. Cibus의 CEO인 Rory Riggs는 이번 구조 조정이 농업에서 상업 단계의 유전자 편집 회사로 전환하기 위한 필수 조치라고 밝혔습니다.
Cibus Inc. (Nasdaq: CBUS) a annoncé un plan de restructuration et de réduction des coûts, y compris une réduction d'effectifs (RIF), afin d'optimiser sa structure d'entreprise. L'entreprise s'attend à générer des économies de coûts d'environ 10 millions de dollars sur une base annualisée et à réduire l'utilisation mensuelle de liquidités d'environ 20% lorsqu'il sera pleinement mis en œuvre d'ici début 2025.
La restructuration est en phase avec l'objectif de Cibus d'avancer dans ses opportunités commerciales les plus immédiates, en particulier dans les caractéristiques résistantes aux herbicides dans le riz, en poursuivant le développement de sa plateforme de soja, et en tirant parti de caractéristiques multiculteurs, y compris la tolérance aux maladies dans le colza et le colza d'hiver. L'entreprise cherchera également à lancer des projets financés par des partenaires de manière opportuniste.
La RIF devrait entraîner des charges uniques d'environ 0,35 million de dollars au quatrième trimestre de 2024 pour congés accumulés et indemnités de départ. Rory Riggs, PDG de Cibus, a déclaré que cette restructuration est nécessaire pour la transformation de l'entreprise d'une entité axée sur la R&D à une société d'édition génétique en phase commerciale dans l'agriculture.
Cibus Inc. (Nasdaq: CBUS) hat einen Plan zur Umstrukturierung und Kostensenkung angekündigt, der eine Personalreduzierung (RIF) umfasst, um die Unternehmensstruktur zu optimieren. Das Unternehmen erwartet, Jahreskostenersparnisse von etwa 10 Millionen US-Dollar zu erzielen und den monatlichen Bargeldverbrauch um etwa 20% zu senken, wenn dies bis Anfang 2025 vollständig umgesetzt ist.
Die Umstrukturierung steht im Einklang mit Cibus' Fokus auf die Förderung seiner kurzfristigsten kommerziellen Möglichkeiten, insbesondere in herbizidresistenten Eigenschaften in Reis, der kontinuierlichen Entwicklung seiner Sojabohnenplattform und der Nutzung multikultureller Eigenschaften einschließlich Krankheitsresistenz bei Raps und Winterraps. Das Unternehmen wird auch opportunistisch partnerfinanzierte Projekte verfolgen.
Die RIF wird voraussichtlich einmalige Kosten von etwa 0,35 Millionen US-Dollar im vierten Quartal 2024 für aufgelaufenen Urlaub und Abfindungen verursachen. Cibus-CEO Rory Riggs erklärte, dass diese Umstrukturierung notwendig sei für den Übergang des Unternehmens von einer forschungs- und entwicklungsorientierten Einrichtung zu einem kommerziellen Unternehmen für Gentherapie in der Landwirtschaft.
- Expected cost savings of $10 million on an annualized run-rate basis
- Projected 20% reduction in monthly cash use
- Focus on advancing nearest-term commercial opportunities in herbicide-resistant traits for Rice
- Continued development of Soybean platform and multi-crop traits
- Transformation towards becoming a commercial-stage gene editing company in agriculture
- Reduction in workforce (RIF)
- One-time charges of $0.35 million in Q4 2024 for accrued vacation and severance
Insights
The restructuring announcement by Cibus Inc. (CBUS) signals a significant shift in the company's strategy, focusing on near-term commercial opportunities. The projected
However, the one-time charge of
Investors should monitor the company's ability to translate these cost savings into improved financial performance and successful product commercialization. The restructuring may be viewed positively if it leads to faster revenue growth and a path to profitability, but it also carries execution risks that need to be carefully evaluated.
Cibus' restructuring reflects a pivotal moment in the agricultural biotechnology sector. The company's focus on herbicide-resistant traits in Rice and pod shatter reduction in Canola addresses key market demands. These traits can significantly impact crop yields and farm economics, potentially leading to strong commercial partnerships and royalty streams.
The continued development of the Soybean platform is strategically important, given soybean's global significance. The multi-crop traits, particularly disease tolerance in Canola and Winter Oilseed Rape, demonstrate Cibus' versatility in trait development across various crops.
The shift from R&D to commercialization is a critical transition for ag-tech companies. Cibus' ability to secure support from "top-tier global seed companies" is a positive indicator of market validation. However, the success of this transition will depend on regulatory approvals, farmer adoption rates and the company's ability to scale its technology across different crops and markets.
Investors should closely monitor Cibus' progress in product launches and partnerships, as these will be key drivers of future value creation in the competitive ag-tech landscape.
Projected Cost Savings of Approximately
SAN DIEGO, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Cibus, Inc. (Nasdaq: CBUS) (the "Company"), a leading agricultural technology company that develops plant traits to license to seed companies for royalties, announced a restructuring and cost reduction initiatives, including a reduction in force (“RIF”), to optimize the Company’s business and cost structure in alignment with its strategic priority to advance its nearest-term commercial opportunities.
The Company expects these actions, along with other initiatives, to generate cost savings of approximately
Rory Riggs, Co-Founder, Chairman, and CEO of Cibus stated, “This restructuring is a necessary step for the Company in our continued transformation from an R&D-focused company to the first commercial stage gene editing company in agriculture with the support from top-tier global seed companies. Our streamlined organization will allow us to more efficiently focus our efforts on executing on our product launches with our herbicide resistant traits in Rice and traits for pod shatter reduction in Canola, while maintaining the ability to capitalize on our continued positive progress developing our Soybean platform and advancing our traits for Sclerotinia resistance and herbicide tolerance HT2 trait.”
Mr. Riggs added, “I would like to express our appreciation to each of our impacted colleagues. They have each made meaningful contributions to the development of Cibus and we are committed to supporting them through this transition.”
About Cibus
Cibus is a leading independent plant trait company that develops and licenses plant traits to seed companies for royalties. Cibus is not a seed company, but rather a technology company that uses its proprietary gene editing technology to develop and commercialize plant traits at a fraction of the time and cost of conventional breeding. Cibus’ strategy is focused on commercializing productivity traits for the world’s major row crops with large acreage such as: canola, rice, soybean, corn and wheat. The Company targets traits that help manage farmers’ seed productivity and sustainability challenges such as weeds, disease, and insects. The United Nations estimates that the impacts from these challenges cost the global economy approximately
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws, including The Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact included herein, including statements regarding Cibus' cost reduction initiatives, reduction in headcount and associated costs, and anticipated cost savings, as well as Cibus’ strategy, future operations, prospects, and plans are forward-looking statements. Forward-looking statements may be identified by words such as "anticipate," "believe," "intend," "expect," "plan," "scheduled," "could," "would" and "will," or the negative of these and similar expressions.
These forward-looking statements are based on the current expectations and assumptions of Cibus' management about future events, which are based on currently available information. These forward-looking statements are subject to numerous risks and uncertainties, many of which are difficult to predict and beyond the control of Cibus. Cibus' actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: Cibus' need for additional near-term funding to finance its activities and challenges in obtaining additional capital on acceptable terms, or at all; changes in expected or existing competition; challenges to Cibus' intellectual property protection and unexpected costs associated with defending intellectual property rights; increased or unanticipated time and resources required for Cibus' platform or trait product development efforts; Cibus' reliance on third parties in connection with its development activities; challenges associated with Cibus' ability to effectively license its productivity traits and sustainable ingredient products; the risk that farmers do not recognize the value in germplasm containing Cibus' traits or that farmers and processors fail to work effectively with crops containing Cibus' traits; delays or disruptions in the Company’s platform or trait product development efforts; challenges that arise in respect of Cibus' production of high-quality plants and seeds cost effectively on a large scale; Cibus' dependence on distributions from Cibus Global, LLC to pay taxes and cover its corporate and overhead expenses; regulatory developments that disfavor or impose significant burdens on gene-editing processes or products; delays and uncertainties regarding regulatory developments in the European Union; Cibus' ability to achieve commercial success; commodity prices and other market risks facing the agricultural sector; technological developments that could render Cibus' technologies obsolete; changes in macroeconomic and market conditions, including inflation, supply chain constraints, and rising interest rates; dislocations in the capital markets and challenges in accessing liquidity and the impact of such liquidity challenges on Cibus' ability to execute on its business plan; the outcome of any litigation related to the Merger Transactions; the Company's assessment of the period of time through which its financial resources will be adequate to support operations; and other important factors discussed in the "Risk Factors" section of Cibus' Annual Report on Form 10-K which was filed with the Securities and Exchange Commission (the "SEC") on March 21, 2024. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Cibus' assessment of the period of time through which its financial resources will be adequate to support its operations is a forward-looking statement and involves such risks and uncertainties. Accordingly, the Company could use its available capital resources sooner than it currently expects.
In addition, the forward-looking statements included in this press release represent Cibus' views as of the date hereof. Cibus specifically disclaims any obligation to update such forward-looking statements in the future, except as required under applicable law. These forward-looking statements should not be relied upon as representing Cibus' views as of any date subsequent to the date hereof.
CIBUS CONTACTS:
INVESTOR RELATIONS
Karen Troeber
ktroeber@cibus.com
858-450-2636
Jeff Sonnek – ICR
jeff.sonnek@icrinc.com
MEDIA RELATIONS
media@cibus.com
Colin Sanford
colin@bioscribe.com
203-918-4347
FAQ
What cost savings does Cibus (CBUS) expect from its restructuring plan?
How much will Cibus (CBUS) reduce its monthly cash use?
What are the main focus areas for Cibus (CBUS) after the restructuring?
What one-time charges will Cibus (CBUS) incur due to the reduction in force?
