Presbia Announces Board and Management Changes and Financing Proposal to Operate Through to the End of 2018
Presbia announced that it has reordered its operational priorities to focus its resources on FDA approval as well as ongoing clinical and commercial efforts in Germany and South Korea. These actions reduce the company’s cash burn rate by eliminating pre-FDA approval marketing, manufacturing, and engineering expenses related to the post-FDA approval U.S. commercial launch of the Presbia Flexivue Microlens, according to a company news release. Presbia’s efforts are focused on the valuable intellectual property developed by the company since 2008.
In parallel, Presbia has received an investment proposal from Orchard Capital Corporation, which is affiliated with Presbia’s majority shareholder, to invest up to $5 million in the company’s preferred shares. The proposed investment, together with existing cash-on-hand and a reduced burn rate, is expected to fund Presbia’s operations for the entirety of 2018 and through the anticipated FDA approval of the Flexivue Microlens. Presbia continues to explore other financing options and plans to finalize the capital raise by mid-February 2018.
Also, the board of directors accepted the resignation of Randy Thurman, Executive Chairman, and Todd Cooper, board member, President and CEO, effective on December 11, 2017. The board of directors elected Mark Yung as Executive Chairman of the board and CEO of Presbia. Mark Yung has previous experience as chairman, CEO and senior management of various technology and manufacturing companies, where he successfully led strategy setting and execution.
“The board thanks Randy Thurman and Todd Cooper for their dedicated leadership at Presbia,” Mr. Yung said in a company news release. “This is an exciting time to join Presbia as it advances through to its final PMA module submission, and to assist in making the Flexivue Microlens available as an FDA-approved optical lens implant to over 1.8 billion presbyopes globally.”
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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