Vyant Bio Inc (NASDAQ:VYNT) told investors that the company’s president and CEO John Roberts and chief scientific officer Dr Robert Fremeau have agreed in principle to step down from their respective positions, effective today, February 3, to preserve cash for the execution of an orderly wind-down process.
Roberts will remain a member of the board of directors, while chief financial officer Andrew LaFrence will assume the position of president CEO to lead the company through the period of transition, New Jersey-based Vyant said.
The move is part of a "reduction in force" that Vyant’s board of directors determined was appropriate in order to preserve cash to allow the company, through its advisors including LifeSci Capital, to continue to pursue satisfactory strategic alternative transactions and/or execute an orderly wind-down of the company, if necessary.
READ: Vyant Bio appoints LifeSci Capital to review strategy focused on enhancing shareholder value
"The company’s board and management believe that it is prudent to allow time for LifeSci Capital to continue its mandate of exploring potential strategic transactions while providing for prudent cash management in the event strategic alternatives fail to materialize and an orderly wind-down of the company’s operations becomes necessary," LaFrence said in a statement.
The company said its decision to potentially pursue other strategic alternatives to unlock material value is based on its belief that its stock price does not reflect the fundamental value of the business. On January 4, 2023, it announced it had engaged LifeSci Capital to assist the board in evaluating potential strategic options.
Vyant Bio is an innovative biotechnology company focused on identifying unique biological targets and novel and repurposed therapeutics for treating debilitating neurodevelopmental and neurodegenerative disorders for which there are no current therapies. The company has built a platform of therapeutics seeking to treat neurodevelopmental and neurodegenerative diseases, with current programs targeting Rett Syndrome, CDKL5 Deficiency Disorders (CDD), and familial Parkinson’s Disease.
Contact the author at stephen.gunnion@proactiveinvestors.com