IMV starts CCAA proceedings, plans to make Chapter 15 filing

By Sarah Lizee

Olympia, Wash., May 1 – IMV Inc. announced that the Nova Scotia Supreme Court issued an initial order granting the company and its subsidiaries protection under the Companies’ Creditors Arrangement Act.

The company will seek the recognition of the initial order in the United States by filing a Chapter 15 petition, according to a press release.

IMV said that, despite the growing industry enthusiasm surrounding cancer vaccines and its encouraging clinical trial results, there are limited opportunities to raise additional capital in the current market conditions and IMV was unable to identify a suitable solution available in the near term.

The initial order provides a stay of creditor claims and the exercise of contractual rights with a view to provide the company breathing room to continue its ongoing strategic review process under the oversight of the board of directors and with the advice of the company’s professional advisers, IMV said.

The company anticipates that it will seek the approval of the court to initiate a formal sale and investment solicitation process intended to generate interest in either the business or the assets of the company, or in a recapitalization of the company.

A transaction may be in addition to, or as an alternative, to a CCAA plan of compromise or arrangement, to maximize return in respect of the company’s business and assets.

The initial order provides that the company’s management remains responsible for the day-to-day operations, and that the board of directors remains intact.

The court has appointed FTI Consulting Canada Inc. to serve as the monitor in the CCAA proceedings, to assist the company with its restructuring efforts and to report to the court during the restructuring.

At this time, the company expects that it will have enough funds to complete its CCAA proceedings and potential restructuring.

Trading in the common shares of the company on the Toronto Stock Exchange and the Nasdaq Capital Market has been halted and it is anticipated that it will continue to be halted until a review is undertaken by the TSX and Nasdaq.

IMV is a clinical-stage company developing a portfolio of immune-educating therapies based on its novel DPX platform to treat solid and hematologic cancers.

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