In order to preserve the company’s remaining cash resources, the company’s employees were released from employment, except for Shawn Cain, the company’s president and CEO, and Scott Hayashi, the company’s CFO, who will continue to provide services to the company as part-time consultants on a month-to-month basis while they seek funding and strategic alternatives.
The company does not expect to publicly disclose any developments with respect to any financing transactions or strategic alternatives unless and until its board of directors has approved a transaction.
As the company has previously disclosed, it needs to either raise additional funds or enter into a strategic relationship in order to fund the completion of clinical trials for its Sepet liver assist device, the preparation and submission of applications to the FDA and other competent authorities for marketing in Europe, and the maintenance of its intellectual property portfolio.
If a financing or strategic transaction is not consummated, or is near consummation, by August 31, 2008 the company will then need to consider other options, including liquidation.
Mr Cain said: “Sepet is our extracorporeal (outside the body) liver assist device for blood purification of patients suffering from cirrhosis due to chronic liver disease and who are hospitalized with acute complications due to worsening liver dysfunction and portal hypertension. Unfortunately, despite our recent accomplishments, in the current financial environment, we have not been able to obtain any funding.”