Resignation of CEO & Director and cost cutting amidst COVID-19
March 25 2020 - 6:00AM
The Directors and Management of Immuron wish to provide an update
to the market regarding the current and future impact of COVID-19
on the Company.
The World is in the midst of an unprecedented
health crisis as a result of the COVID-19 pandemic. An entirely new
political, social, and economic reality has emerged and will
continue to evolve. The consequences of this altered reality will
have serious ramifications for many companies and organizations.
One of these is that the COVID-19 pandemic has brought to an abrupt
halt travel plans of millions throughout the world. Many countries
are now in total lockdown with people unable to leave their homes
except for very limited purposes, with many country lockdowns
coming into effect over the last few days.
It is unrealistic to believe that consumer sales
of Travelan will not be significantly impacted over the coming
three quarters. And while the Company has not yet experienced any
reduction in sales in Australia, and only small reductions in the
USA, the Board believes this is more a reflection of wholesale
restocking by distributors rather than end sales to consumers. That
said, the level of such wholesale uptake is testament to the
inroads that Travelan has made within numerous global markets, and
which the Board is confident will be re-established and enhanced in
the future.
As a result, the Board has moved quickly to
address the present situation. The keystone of this strategy will
be the preservation of capital to allow the Company to weather the
current trading conditions pending strengthening of the travel
market. This will involve radical cost-cutting and deferring
certain research and development activities.
As a major first step in this process, Immuron’s
CEO Gary S. Jacob has offered his resignation as CEO and member of
the Board of Immuron, and the Board has accepted. Dr. Roger Aston,
Chairman of Immuron, said: “We want to thank Dr. Jacob for all of
his considerable contributions to the Company, and wish him well in
his future endeavors.” Dr. Jacob will be replaced as CEO by Dr.
Jerry Kanellos. This will result in day-to-day control of the
Company operations and executive strategy returning to
Australia.
Additional acute steps are being implemented
which will see either the disappearance or significant reduction in
external consultant costs. As part of this, all Directors have
agreed to the establishment of a remuneration model which will
utilize payment of Board fees other than by monetary recompense. In
total these changes are expected to reduce cash operating expenses
by over $2m annually effective from April.
At the same time as introducing these
cost-cutting measures, the Company will look to increase overall
revenues to help mitigate the anticipated decrease in Travelan
sales – due to decreased travel – by aggressively promoting
Travelan and Travelan's sister product, Protectyn, for their gut
health benefits.
In addition, the Board will enthusiastically
continue to support and develop all non-dilutive research and
development initiatives with the US Department of Defense. Immuron
sees this relationship as a very significant opportunity into the
future.
The Board of Immuron is committed to taking all
steps necessary to protect the Company at this time. As a result of
these actions it is hoped that the Company will emerge from this
crisis in a strong position and able to reap the benefits of the
actions being taken today.
Release of this announcement is authorized by
the Board
About ImmuronImmuron Limited
(ASX: IMC, NASDAQ: IMRN), is an Australian biopharmaceutical
company focused on developing and commercializing orally delivered
targeted polyclonal antibodies for the treatment of infectious
diseases. Immuron has a novel and safe technology platform with one
commercial asset generating revenue. In Australia, Travelan® is a
listed medicine on the Australian Register of Therapeutic Goods
(AUST L 106709) and is indicated to reduce the risk of Travellers’
Diarrhea, reduce the risk of minor gastro-intestinal disorders and
is antimicrobial. In Canada, Travelan® is a licenced natural health
product (NPN 80046016) and is indicated to reduce the risk of
Travellers’ Diarrhea. In the U.S., Travelan® is sold as a dietary
supplement for digestive tract protection in accordance with
section 403 (r)(6) of the Federal Drug Administration (FDA).
For more information visit:
http://www.immuron.com
COMPANY CONTACT:
Jerry Kanellos, Ph.D.
Chief Executive Officer
Ph: +61 (0)3 9824 5254
info@immuron.com
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