uqudenlid.blogspot.com
It’s the second year that the Germantown biotech’s auditors, , have raisex the risk that the companyg may not continue as agoing concern, which mean the company doesn’t have cash to operatre for the next 12 months. After strugglinbg to survive and cutting costs through shrinking staff andportfolio projects, Avalon in October 2008 announcecd it intended to sell itself to Massachusetts-based for $10 millio n in stock. Clinical Data had given Avalon a $3 million loan to tide the smallert company over until the originally anticipatedd March closing date.
But the deal endedx up stretching beyond that first and Avalon recently revealed it receivedanotherf $1 million loan to keep operations goint until a newly set closing date in May. Avalobn has said it doesn’t have the resourcexs to continue operating as is past May 31 if thesale doesn’yt occur. If Clinical Data acquires Avalon, it plans to make the local company a wholly owned subsidiarhy to remainin Germantown. Clinical Data has signede agreements to keep on Avalon Presidenrt and CEO Ken Carter and Chiecf Medical OfficerMichael Hamilton.
Carter, Hamilton and Avalon CFO Eric Winzerd are all slated to receivs severancepayments -- a year’s pay for who makes $300,000, and Winzer, who makexs $285,600, and nine month’x pay for Hamilton, who made as well as some health benefit s -- if their positions are eliminated as a resulr of the sale. Avalon (NASDAQ: AVRX) also facese a hearing on April 30 toappeaol Nasdaq’s decision to delist the company’s stock from its exchanger for falling below the minimum $10 million requirede in stockholders’ equity for listec companies.
No comments:
Post a Comment