Swiss clinical-stage biopharmaceutical company, NLS Pharmaceutics Ltd, declared today that it is actively engaged in an ongoing process to investigate strategic alternatives aimed at maximizing shareholder value. Following the announcement, the stock of NLS Pharmaceutics Ltd experienced a significant downturn. Having closed Wednesday’s trading session at $0.48, it opened the next trading day at $0.47 and is currently trading at $0.31.
At the time of this publication, NLS Pharmaceutics AG stock (NLSP) has witnessed a decline.
NLS Pharmaceutics AG
Current Price: $0.31
Change : -0.18
Change (%): (-37.47%)
Volume: 1.4M
Source: Tomorrow Events Market Data
Motivated by the rapidly evolving biotech and pharmaceutical landscape and driven by a commitment to innovation, NLS has embarked on a comprehensive exploration of new opportunities that align with its core values and strengths. This strategic move is designed to diversify NLS revenue streams, mitigate risks, and create enduring value for stakeholders. As part of this exploration, the company plans to consider various options, focusing on maximizing shareholder value, including strategic partnerships, out-licensing assets, and other future strategic actions.
Initial Steps Taken:
As a pivotal step in this direction, NLS Pharmaceutics has chosen a strategic partner and signed a non-binding term sheet for the out-licensing of its intellectual property, including the key asset, Mazindol. The financial terms of the term sheet are yet to be finalized, and the company anticipates completing this transaction in the first quarter of 2024.
In a bid to secure its financial position, NLS has procured additional bridge financing of approximately $1 million USD. This financing is intended to extend the company’s cash runway until the second quarter of 2024 and has been provided by company insiders, including Ronald Hafner, the company’s Chairman, Felix Grisard, Jürgen Bauer, and Maria Nayvalt. The bridge loans are set to mature upon the earlier of June 30, 2024, or a liquidity event with a strategic partner. Notably, NLS had previously received a bridge loan of 500,000 CFH from Mr. Hafner, which has also been extended to mature at the same time as the second loan, or until June 30, 2024.
In tandem with these financial maneuvers, NLS has implemented a workforce reduction of approximately 50%, encompassing a pause on consulting agreements, a reduction in non-clinical staff, and a trimming of non-essential operating expenses, Benzinga has reported.
Alex Zwyer, CEO, and Co-Founder of NLS Pharmaceutics, expressed, “We invite stakeholders, customers, and partners to follow our journey as we explore new opportunities now and in the coming months. Regular updates and progress reports will be shared to keep everyone informed about the exciting developments stemming from this strategic exploration.”
Commitment to Quality and Integrity:
Throughout this exploration process, NLS remains steadfast in maintaining the highest standards of quality and integrity. The leadership of NLS Pharmaceutics is confident that these strategic alternatives initiatives will not only contribute to sustainable growth but also fortify its position as an emerging leader in innovative therapies for patients with rare and complex central nervous system disorders. NLS Pharmaceutics is determined to navigate these transformative changes with transparency and resilience, keeping all stakeholders well-informed about its progress.
