Novelion Therapeutics Inc. (NASDAQ:NVLN) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05. Costs Associated with Exit or Disposal Activities.
On August21, 2018, Novelion Therapeutics Inc. (the “Company”) committed to a cost-reduction plan, as part of the Company’s next phase of operational improvements, that includes a reduction of approximately 36% of the Company’s workforce and other cost control measures that the Company expects will reduce its remaining 2018 operating expenses by approximately $20 million and its 2019 operating expenses by approximately $35 million. These cost-reduction plans are part of a broad program designed to allow the Company to focus on its two commercial products, and are intended to create a pathway to positive cash flow for the Company and to enhance the Company’s ability to leverage its flexible capital structure and restructure the outstanding convertible notes of the Company’s operating subsidiary, Aegerion Pharmaceuticals,Inc. The actions associated with this program are expected to be largely completed in the third quarter of 2018.
As a result of the headcount reduction and cost control measures, the Company estimates that it will incur charges of approximately $1.5 million in the third quarter of 2018, which include termination benefits principally comprised of severance payments, that will result in future cash expenditures over approximately the next 12 months.
Item 7.01 Regulation FD.
A copy of the press release announcing the Company’s cost-reduction plans is furnished with this report as Exhibit99.1.
Exhibit99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Forward Looking Statements
Certain statements in this report constitute “forward-looking statements” of the Company within the meaning of applicable laws and regulations and constitute “forward-looking information” within the meaning of applicable securities laws. Any statements contained herein which do not describe historical facts, including statements regarding expectations for the cost-reduction plans, including the estimated reduction in operating expenses, creating a pathway to positive cash flow and enhancing the Company’s ability to address its capital structure, and the timing of completion of the plan and anticipated termination benefits are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Such risks and uncertainties include, among others, those risks identified in the Company’s filings with the U.S. Securities and Exchange Commission (the “Commission”), including under the heading “Risk Factors” in our Annual Report on Form10-K for the year-ended December31, 2017, and subsequent filings, with the Commission, available on the Commission’s website at www.sec.gov. Any such risks and uncertainties could materially and adversely affect the Company’s results of operations, profitability and cash flows, which would, in turn, have a significant and adverse impact on the Company’s stock price. The Company cautions investors not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.
This report also contains “forward-looking information” that constitutes “financial outlooks” within the meaning of applicable Canadian securities laws. This information is provided to give investors general guidance on management’s current expectations of certain factors affecting our business, including the Company’s financial results. Given the uncertainties, assumptions and risk factors associated with this type of information, including those described above, investors are cautioned that the information may not be an appropriate subject of reliance for other purposes.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits.
