NEW YORK, Feb. 10 /PRNewswire-FirstCall/ -- Intellect Neurosciences, Inc. (OTC Bulletin Board: ILNS), a biopharmaceutical company focused on development of disease-modifying therapeutic agents for Alzheimer's disease ("AD"), announced today that several of its significant shareholders (the "Interested Shareholders") have agreed in principle to provide interim funding to the Company and assist the Company in its efforts to restructure its balance sheet. The Company has initiated discussions with the Interested Shareholders regarding a potential equity financing to fund operations for a longer period than that covered by the interim funding. The contemplated transactions are subject to negotiation and execution of definitive agreements.
Appointment of New Directors
In connection with the contemplated financings, the Interested Shareholders will be given the right to appoint three new members to a newly constituted Board of Directors of the Company. Recently, the Company disclosed that its former independent directors resigned their positions because of a lack of funding to pay for directors and officers liability insurance. The Interested Investors intend to nominate suitable candidates to fill the Board vacancies shortly. The Company intends to seek the approval of its shareholders to a resolution amending the Company's certificate of incorporation to reduce the number of seats on the Board of Directors to five members.
Dr. Daniel Chain has agreed to resign from his position as Chief Executive Officer and assume the position of Chief Scientific Officer so that he may focus his time on advancing the Company's pipeline programs. He will remain Chairman of the Board of Directors. Elliot Maza will remain President and CFO and a m
|SOURCE Intellect Neurosciences, Inc.|
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