Catalyst Biosciences (CBIO) to Distribute $65M of Cash to Shareholders

Catalyst Biosciences, Inc. (NASDAQ: CBIO) (the “Company” or “we”) today announced its intention to distribute cash to the Company’s stockholders through one or more distributions. The intention of the Company’s Board of Directors (the “Board”) is to maximize the size of the total distribution after satisfying or reserving for Company obligations, and to complete the distribution as soon as practicable. The Board currently expects the total amount of cash to be distributed to stockholders to be as much as $65 million, depending upon several factors, including pending stockholder litigation.

“After careful deliberation by the Board and constructive engagement with several of the Company’s largest investors, I am pleased to announce that we are planning to distribute cash to stockholders,” said Nassim Usman, Ph.D., Chief Executive Officer of Catalyst Biosciences. “This follows our recently completed sale of a portion of our product portfolio for up to $60 million in cash, $55 million upfront and $5 million in a 12-month hold-back, after a thorough and competitive process with the assistance of independent financial and legal advisors.”

Dr. Usman continued, “In addition, we have aggressively reduced costs through headcount reductions, ceased all R&D activities, terminated our lab lease and monetized lab and other equipment. We now have six employees – enough to manage the orderly transfer of the technology we sold, continue efforts to monetize the Company’s remaining assets, and satisfy our public company reporting obligations.”

The Company intends to make an initial distribution as soon as the potential liability and expenses associated with the ongoing Delaware Court of Chancery stockholder litigation and the contested Annual Meeting of Stockholders initiated by one of the Company’s stockholders, JDS1, LLC (“JDS1”), can be fully evaluated by the Board.

Dr. Usman continued, “We call upon JDS1 to drop its lawsuit and proxy contest so that we can distribute the first, sizable portion of our cash to the Company’s stockholders expeditiously.

The Company continues to work with its independent advisors to evaluate additional strategic opportunities, including licensing and other asset sales to maximize and monetize the value of the Company’s remaining assets. It is the Board’s intent to distribute all available cash to stockholders after accounting for Company obligations and contingent liabilities.

The Company expects that after the initial distribution, it will continue to hold sufficient cash for future expenses to satisfy the Company’s obligations and liabilities, meet indemnification and tax obligations associated with the recent asset sale to Vertex Pharmaceuticals, pay wind-down costs, and meet D&O insurance policy requirements. The Company will make further distributions as its liabilities and obligations become clear.

Stockholders do not need to take any action at this time. The Company intends to provide further updates to stockholders as developments warrant.

You May Also Be Interested In

• TD Cowen Assumes Crescent Biopharma Inc (CBIO) at Buy
• TriCo Bancshares (TCBK) Declares $0.36 Quarterly Dividend; 2.6% Yield
• Cincinnati Financial (CINF) Declares $0.94 Quarterly Dividend; 2.2% Yield