Chromos plans credit restructuring; to seek additional financing

By Laura Lutz

Des Moines, April 12 - Chromos Molecular Systems Inc. announced plans to make a restructuring proposal to its creditors and said that it will continue to look for additional financing.

The company plans to scale back its operations and temporarily lay off 12 of its 25 employees.

The company said in the release that "additional financing will likely be required during the period to ensure that the company can complete the restructuring process."

If it is not able to find financing, Chromos may have to further scale back or terminate its operations, the company said.

On April 3, Chromos announced that the underwriters had withdrawn from the company's previously announced C$4 million private placement of units.

A syndicate led by Dundee Securities Corp. and including Canaccord Capital Corp. had been expected to underwrite the deal.

The underwriters' decision was primarily due to the decline in the price of the company's shares and the end of its collaboration discussions with a U.S. biotechnology company, according to a news release issued by Chromos at the time.

At close on Tuesday, the company's shares had lost about 73.1% since the deal priced on March 21 (Toronto: CHR). The closing price on March 21 was C$0.13. On Tuesday, the shares closed down 2 cents, or 36.36%, at C$0.035.

The company had planned to sell 40 million units of one share and one warrant at C$0.10 per unit. Each whole warrant will be exercisable at C$0.15 for five years.

Based in Burnaby, B.C., Chromos is a biopharmaceutical company focused on inflammatory diseases and thrombotic disorders.

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