NeuroSearch A/S – Interim report for the period January-September 2013

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Below please find the interim report for the period January-September 2013. The full report is available in the enclosed PDF file

Announcement
12.11.2013

 

The NeuroSearch Group (NEUR) realised an operating loss of DKK 8 million (a loss of DKK 446 million in the same period 2012), and a loss after tax of DKK 7 million (a loss of DKK 490 million in the same period 2012).

At 30 September 2013, the company's cash and cash equivalents totalled DKK 94 million (DKK 47 million at 30 September 2012).

Important events in Q3 and until today

  • NeuroSearch repaid its remaining mortgage debt in July in connection with the sale of the domicile property. The new owner took over the building on 1 July 2013, and NeuroSearch moved to leased premises at Strandvejen 60, DK-2900 Hellerup in the autumn.
  • On 17 July 2013, NeuroSearch announced that the Public Prosecutor for Special Economic and International Crime has charged the company with alleged qualified share price manipulation. The indictment concerns a company announcement released on 3 February 2010 which NeuroSearch corrected at its own initiative on 28 April 2010. On the present basis, NeuroSearch denies the charge and awaits prosecution of the case in court.
  • On 31 July 2013, NeuroSearch announced that the Board of Directors had given notice of termination to the CEO, René Schneider. This was done as a natural step in the strategy for winding up the company's activities as the Board of Directors wanted to mitigate the company's costs in connection with its day-to-day operations. Mr. Schneider is still the company's CEO, but the parties have agreed that Mr. Schneider will be released from his duties no later than 30 November 2013. The company expects to announce changes in Management and Board composition following Mr. Schneiders release from his position no later than end of November.

Update on the company's activities

Significant efforts have been made by the management and the Board of Directors to divest the remaining activities. Negotiations have been held with a number of parties, including with respect to a sale of the entire company and its tax loss carried forward. However, all efforts to sell the company or reach any other arrangement for continuing the operation of the company in the longer term, e.g. through a merger with another company, have so far been unsuccessful.

The main reason is that the company was charged in July 2013 by the Public Prosecutor for Special Economic and International Crime (SEIC) with respect to an event in the spring of 2010. The charge against the company is for share price manipulation, which the company denies. It is expected that the hearing in court will take place in mid-2014 at the earliest.

Until a final judgment is available in the case, NeuroSearch does not expect any sale, merger or the like of the company as the consequences of a judgment will be largely unknown to a potential buyer or merger partner. For the same reason the company is not able to pay out dividend or initiate a liquidation.

The operation of the company will therefore be continued with as few expenses as possible.  

Outlook for 2013

NeuroSearch upgrades its guidance for 2013 from an operating loss of approximately DKK 15 million to an operating loss of approximately DKK 10 million.

The above outlook does not take into account any loss or profit arising out of a potential sale of the remaining NeuroSearch assets.

 

Allan Andersen
Chairman of the Board of Directors
René Schneider
CEO



Contact person
René Schneider, CEO, telephone: +45 2911 2097



About NeuroSearch
NeuroSearch A/S (NEUR) is listed on NASDAQ OMX Copenhagen A/S.