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Pressemitteilung BoxID: 580541 (4SC AG)
  • 4SC AG
  • Fraunhoferstr. 22
  • 82152 Planegg-Martinsried
  • http://www.4sc.de
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  • Chad Rubin
  • +1 (646) 378-2947

4SC AG: Notice of loss pursuant to section 92 (1) German Stock Corporation Act (Aktiengesetz, AktG)

(PresseBox) (Planegg-Martinsried, ) The Management Board of 4SC AG (Frankfurt, Prime Standard: VSC), a discovery and development company of targeted small molecule drugs for autoimmune diseases and cancer, today announced in coordination with its Supervisory Board that, after due consideration, it must be assumed that the company has incurred a loss amounting to half of its share capital based on the accounting principles of the German Commercial Code (Handelsgesetzbuch, HGB). This is due to operating losses that have accumulated as planned in drug development as part of 4SC AG's business. A loss amounting to half of the share capital triggers a legal obligation under Section 92 (1) German Stock Corporation Act to convene a General Meeting of shareholders immediately, at which this fact is to be disclosed. The Management Board of 4SC AG intends to disclose this fact and discuss the company's situation at the Annual General Meeting scheduled for 2 May 2013. The notice of the Annual General Meeting including the agenda will be announced in due time and form within the next days.

Furthermore the Management Board of 4SC AG declares that the ongoing audit of the consolidated financial statements has already shown that, based on the company's current cash funds and its further expense and revenue planning, the company's existence as a going concern is ensured into the third quarter of 2014 - i.e. for a period in excess of the 12-month period required under IFRS.

Additional information of the issuer of this release

In addition, the Management Board of 4SC AG wishes to point out that disclosing a loss amounting to half of the share capital under the provisions of German commercial law (HGB) is not uncommon in the industry, given the specific business model of research-based biotech companies such as 4SC. This business model entails planned operating expenses that accumulate as loss carryforwards during the development of new drugs, which usually is expensive and time-consuming. These expenses are contrasted by the attractive opportunities of a possible realisation of income, for instance through product sales after market approval or licensing products to other companies, all of which occurs significantly later than expenses are incurred.

Legal Note

This document may contain projections or estimates relating to plans and objectives relating to our future operations, products, or services; future financial results; or assumptions underlying or relating to any such statements; each of which constitutes a forward-looking statement subject to risks and uncertainties, many of which are beyond our control. Actual results could differ materially, depending on a number of factors.

4SC AG

The Group managed by 4SC AG (ISIN DE0005753818) discovers and develops targeted, small-molecule drugs for treating diseases with high unmet medical needs in various autoimmune and cancer indications. These drugs are intended to provide innovative treatment options that are more tolerable and efficacious than existing therapies, and provide a better quality of life. The Company's balanced pipeline comprises promising products that are in various stages of clinical development. 4SC's aim is to generate future growth and enhance its enterprise value by entering into partnerships with leading pharmaceutical companies. Founded in 1997, 4SC had 86 employees at the end of 2012. 4SC AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since December 2005.