Oct 15 2009
La Jolla Pharmaceutical Company (NASDAQ:LJPC) today announced that it has called a special meeting of stockholders for October 30, 2009 for the purpose of voting on a Plan of Complete Liquidation and Dissolution. If approved, the Company would expect to dissolve shortly after the stockholders’ meeting and then commence a liquidation process through which the Company expects that it would satisfy remaining creditor obligations and distribute any remaining cash once the dissolution is complete.
As of August 31, 2009, the Company had cash, net of liabilities and obligations, of approximately $4.4 million. After projected operating and shut down costs, the Company projects that there will be between $0.028 and $0.045 per share available for distribution to holders of the approximately 66 million shares of common stock issued and outstanding. Included in the cash balance as of August 31, 2009 were the proceeds from the Company’s sale of the SSAO assets. As of that same date, the Company had written down the value of the Riquent program and related assets to zero and expects that the Riquent patents will lapse as a result of the Company’s decision to cease all ongoing patent maintenance activities and related expenditures. As a result of these actions, the Company has no ongoing research programs.
While the Company is seeking stockholder approval for the dissolution, the Company expects that it will maintain its listing on the NASDAQ Capital Market. However, if the dissolution is not completed by November 6, 2009, the Company expects that NASDAQ will take action at that time to commence proceedings to delist the Company’s common stock.
Source: La Jolla Pharmaceutical Company
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