Update on Suspension of Trading
4D pharma has announced the suspension of trading of its ordinary shares on AIM due to financial difficulties, effective from 12:30 p.m. in London. The suspension follows a demand from Oxford Finance for immediate repayment of approximately $13.86 million in outstanding loans, which the company cannot fulfill with current cash resources. Consequently, the company has entered administration, with James Clark and David Pike appointed as joint administrators. The board aims to work with the administrators on a rescue plan but acknowledges the uncertainty of success.
- The company is in the process of developing Live Biotherapeutics, a novel drug class with potential market applications.
- 4D pharma has established a research collaboration with Merck & Co. to develop Live Biotherapeutics for vaccines.
- The company has suspended trading due to immediate financial distress.
- Oxford Finance demanded repayment of outstanding loans totaling approximately $13.86 million, which the company cannot meet.
- 4D pharma has entered administration, indicating severe financial instability.
On
The Board has been exploring opportunities to secure additional funding for the Company in recent months, however this has proved challenging but significant progress had been made, despite the very difficult prevailing market conditions. The Board had made Oxford aware of this and discussed a potential funding alternative on the evening of 23 June and on the morning of 24 June, Oxford demanded immediate repayment of the outstanding loans made to the Company, which currently total approximately
Subsequent to the suspension, the Board was informed that Oxford had today instructed that the Company be placed into administration, in accordance with the terms of the Facility. Accordingly,
The Board intends to work with the Joint Administrators on proposals to rescue the Company as a going concern, albeit there can be no guarantee that this will be successful.
Further announcements will be made as applicable.
About 4D pharma
4D pharma is a world leader in the development of Live Biotherapeutics, a novel and emerging class of drugs, defined by the FDA as biological products that contain a live organism, such as a bacterium, that is applicable to the prevention, treatment or cure of a disease. 4D pharma has developed a proprietary platform, MicroRx®, that rationally identifies Live Biotherapeutics based on a deep understanding of function and mechanism.
4D pharma's Live Biotherapeutic products (LBPs) are orally delivered single strains of bacteria that are naturally found in the healthy human gut. The Company has six clinical programs, namely a Phase I/II study of MRx0518 in combination with KEYTRUDA® (pembrolizumab) in solid tumors, a Phase II clinical trial of MRx0518 in combination with BAVENCIO® (avelumab) in the first-line maintenance setting for urothelial carcinoma, a Phase I study of MRx0518 in a neoadjuvant setting for patients with solid tumors, a Phase I study of MRx0518 in patients with pancreatic cancer, a Phase I/II study of MRx-4DP0004 in asthma, and Blautix® in irritable bowel syndrome (IBS) which has completed a successful Phase II trial. A Phase I study of MRx0005 and MRx0029 in patients with Parkinson’s disease is expected to commence in 2022. Additional preclinical-stage programs include candidates for CNS disease, immune-inflammatory conditions and cancer. The Company has a research collaboration with MSD (Merck & Co., Inc.,
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4D pharma
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Source: 4D pharma
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