IMV Initiates Restructuring Proceedings Under the CCAA to Complete the Review of its Strategic Alternatives
May 01 2023 - 12:30PM
Business Wire
IMV Inc. (the “Company” or “IMV”) (NASDAQ: IMV;
TSX: IMV), a clinical-stage biopharmaceutical Company developing a
portfolio of immune-educating therapies based on its novel DPX®
platform to treat solid and hematologic cancers, announced today
that the Nova Scotia Supreme Court (the “Court”) has issued
an initial order (the “Initial Order”) granting the Company
and its subsidiaries protection under the Companies’ Creditors
Arrangement Act (R.S.C., 1985, c. C-36) (the “CCAA”). The
Company will seek the recognition of the Initial Order in the
United States by filing a petition commencing proceedings under the
Chapter 15 of the United States Bankruptcy Code.
After a careful review of available options under our current
search for strategic alternatives, and following thorough
consultation with its legal and financial advisors, the Company’s
Board of Directors determined that it was in the best interest of
IMV and its stakeholders to file an application for creditor
protection under the CCAA. As previously disclosed by the Company,
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 decision to initiate CCAA proceedings was made keeping in
mind the interest of all of our stakeholders and, in our view, was
the best available option amidst a difficult market,” stated Andrew
Hall, CEO of IMV Inc. “I sincerely regret the impact the
restructuring of our business will have on our valued stakeholders.
This has been an incredibly difficult decision, but a necessary one
to ensure the best outcome for our promising technology and
stakeholders.”
The Initial Order provides a stay of creditor claims and the
exercise of contractual rights with a view to provide the Company
some 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 advisors. In this regard, the
Company anticipates that it will seek shortly 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, with the
goal of implementing a transaction. 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 Company hopes for an outcome that will
allow its DPX delivery technology and associated lead asset,
maveropepimut-S, to realize their full potential.
The Initial Order provides that the Company’s management remains
responsible for the day-to-day operations of the Company and that
the Board of Directors remains intact. The Company is committed to
completing the restructuring process quickly and efficiently.
The Court has appointed FTI Consulting Canada Inc. to serve as
the Monitor in the CCAA proceedings and to assist the Company with
its restructuring efforts and report to the Court during the
restructuring.
At this time, the Company expects that it will have sufficient
funds to complete its CCAA proceedings and potential restructuring.
The Company’s Dartmouth, Nova Scotia headquarters and laboratories
remain open in a limited capacity and its clinical trials,
including its phase 2b AVALON and VITALIZE trials will pause
enrollment, pending the outcome of the review of strategic
alternatives. IMV has sufficient drug supply to ensure that
patients already in screening or enrolled in ongoing trials prior
to May 1, 2023, will be able to receive their treatment.
Trading in the common shares of the Company on the Toronto Stock
Exchange (the “TSX”) and the Nasdaq Capital Market (the
“NASDAQ”) has been halted and it is anticipated that the
trading thereof will continue to be halted until a review is
undertaken by the TSX and NASDAQ regarding the suitability of the
Company for listing on the TSX and NASDAQ.
Further news releases will be provided on an ongoing basis
throughout the CCAA proceedings as required by law or otherwise as
may be determined necessary by the Company or the Court. Documents
relating to the restructuring process such as the Initial Order,
the Monitor’s reports to the Court as well as other Court orders
and documents shall also be published and made accessible on the
Monitor’s website : http://cfcanada.fticonsulting.com/.
About IMV
IMV Inc. is a clinical-stage biopharmaceutical company
developing a novel class of cancer vaccines based on DPX®, our
immune-educating technology platform. DPX is designed to inform a
specific, coordinated and persistent anti-tumor immune response,
improving the lives of patients with solid or hematological
cancers. DPX can package a wide range of bioactive molecules in a
single formulation to incite the tumor-killing function of
multiple, distinct immune cell subtypes. IMV’s lead therapeutic
candidate, maveropepimut-S (MVP-S), is a DPX-based cancer vaccine
that delivers antigenic peptides from survivin, a well-recognized
cancer antigen commonly overexpressed in advanced cancers. MVP-S
also delivers an innate immune activator and a universal CD4 T cell
helper peptide. Together, these elements are designed to foster
maturation of antigen presenting cells as well as robust activation
of CD8 T cell effector and memory function that drive a targeted,
sustained immune response. In our clinical trials, MVP-S treatment
has been well tolerated and has demonstrated favorable clinical
outcomes in multiple cancer indications as well as the activation
of a targeted and sustained, survivin-specific anti-tumor immune
response. MVP-S is administered in very low doses approximately
once every two months, which drives a persistent immune attack on
tumor cells. MVP-S is currently being evaluated in Phase 2B
clinical trials for advanced r/r Diffuse Large B Cell Lymphoma
(DLBCL) and platinum resistant ovarian cancer. IMV is also
developing a dual-targeted cancer vaccine candidate leveraging the
DPX delivery platform, DPX-SurMAGE. This cancer vaccine combines
antigenic peptides for both the survivin and MAGE-A9 cancer
proteins to elicit immune responses to these two distinct cancer
antigens simultaneously. For more information, visit
https://www.imv-inc.com and connect with us on Twitter and
LinkedIn.
IMV Forward-Looking Statements
This press release contains forward-looking information under
applicable securities law. All information that addresses
activities or developments that we expect to occur in the future is
forward-looking information. Forward-looking statements use such
word as “will”, “may”, “potential”, “believe”, “expect”,
“continue”, “anticipate” and other similar terminology.
Forward-looking statements are based on the estimates and opinions
of management on the date the statements are made. In the press
release, such forward-looking statements include, but are not
limited to, statements relating to: (i) the outcome of the CCAA
proceedings, (ii) the obtaining of the approval of the Court to
initiate a formal sale and investment solicitation process to
secure additional financing, sell assets, or a combination thereof,
(iii) the ability of the Company to secure additional financing or
otherwise enter into a transaction, and (iv) halt trading of the
common shares and review of the TSX and NASDAQ regarding the
suitability of the Company for listing on the TSX and NASDAQ and
any outcome of such review. However, they should not be regarded as
a representation that any of the plans will be achieved. Actual
results may differ materially from those set forth in this press
release due to risks affecting the Company, including the outcome
of the CCAA proceedings and the capacity of the Company to enter
into a transaction that would allow the Company to pursue its
activities as a going concern, the continued listing of its common
shares on a stock exchange as well as access to additional capital,
the successful completion of ongoing clinical trials and the timely
receipt of all regulatory approvals to commence, and then continue,
clinical studies and trials and the receipt of all regulatory
approvals to commercialize its products. IMV assumes no
responsibility to update forward-looking statements in this press
release except as required by law. These forward-looking statements
involve known and unknown risks and uncertainties, and those risks
and uncertainties include, but are not limited to, the ability to
access capital, the successful and, generally, the timely
completion of clinical trials and studies and the receipt of all
regulatory approvals as well as other risks detailed from time to
time in our ongoing quarterly filings and annual information form.
Investors are cautioned not to rely on these forward-looking
statements and are encouraged to read IMV’s continuous disclosure
documents, including its current annual information form, as well
as its audited annual consolidated financial statements which are
available on SEDAR at http://www.sedar.com and on EDGAR at
http://www.sec.gov/edgar.
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version on businesswire.com: https://www.businesswire.com/news/home/20230501005498/en/
Brittany Davison Chief Accounting Officer IMV Inc. O: +1
902.492.1819 ext. 1012 bdavison@imv-inc.com
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