Cytomyx gets some funding, plus new CEO; appoints Cambridge Bioscience as distributor
Struggling Cytomyx Holdings plc (CYX.L) said it had secured a loan of $266,000 for immediate working capital and paid off another of $1.9m, while its CEO and chairman have stood aside in favour of the head of its major venture capital investor.
It has also appointed Cambridge BioScience Limited as its new European distributor.
The company, which supplies human biospecimens and support services to the biotechnology and pharmaceutical research industries, flagged its search for funds early last month.
The new lenders are Bioscience Ventures II LP (Rockville, USA), Cambridge BioScience and the just-resigned CEO Mike Kerins (pictured), who will remain a non executive director of the company. The loan has a 2-year term.
Cytomyx said it has now repaid the outstanding principle of $1,900,000 on a loan to Laurus Funds.
Chairman resigns
Chairman Bill Mason and finance director Max Dyer Bartlett resigned as directors. Glenn Gershon, General Manager of Cytomyx LLC remains as an Executive Director.
Dr. Wei-Wu He was appointed as the new Chairman and Chief Executive with immediate effect. He is a General Partner and Co-founder of Emerging Technology Partners LLC which manages the Biosciences Ventures II fund.
He was also one of the first employees of Human Genome Sciences Inc and has been involved in over 20 biotech companies through his career.
Cytomyx said that its operating subsidiary, Cytomyx LLC, had entered into a new Europe-wide distribution agreement with Cambridge BioScience, which was previously a subsidiary. It is a well established marketing partner for life science technology companies wishing to build their business in European markets. The initial term of the appointment is one year, which may be extended subject to it achieving certain minimum purchase levels.
Dr. He said he would be exploring a number of options for the future development of the Cytomyx
"We are pleased to be able to provide this new loan facility, which will be used to provide short-term working capital.
"Cytomyx LLC is an exciting business with a unique offering that can be of great value to its clients in the pharmaceutical industry. The appointment of Cambridge BioScience as our European distributor will provide us with extended reach into the important European market place."
The company's share price gained 0.12p to reach 1.12p on the news. It is now valued arouund £0.7m.
29th November 2006
