NEW YORK – German molecular diagnostics and rare disease company Centogene said Wednesday that it has decided to explore "a range of strategic alternatives focused on sustainable long-term value creation for the benefits of its stakeholders," including a possible sale of the company.
"We recognize the challenges of the current financial markets and want to ensure Centogene is best placed for growth and a path towards profitability," Centogene CEO Kim Stratton said in a statement. "Management is working with the supervisory board to evaluate available options."
Rostock, Germany-based Centogene said its supervisory board has appointed a special committee, consisting of independent members, to oversee the exploration and evaluation of potential strategic alternatives. The committee has also engaged an undisclosed advisory firm to facilitate the process.
According to Centogene, the company’s strategic alternatives may include, but are not limited to, an acquisition of the company through a tender offer, a merger or other business combination, divestitures of assets, licensing and partnership transactions, additional financing, or continuing to operate as an independent public company.
The firm is giving no assurance that the strategic review process will result in any transaction or other strategic outcome and said there is no set timeline for the review. Centogene also noted that it does not intend to disclose further developments on the review process "unless and until it determines that such disclosure is appropriate or necessary."
Also on Wednesday, Centogene said it received a delisting notice from the Nasdaq dated Feb. 27 due to noncompliance with the market's minimum $15 million Market Value of Publicly Held Shares (MVPHS) requirement.
The notice has no immediate effect and will not immediately result in the suspension of trading or delisting of the company’s securities, Centogene said, adding that it intends to request a hearing, which will automatically stay any suspension or delisting action.
Centogene received a similar noncompliance notice from the Nasdaq over the market value of shares last June.
Last fall, the company announced cost-cutting measures to lower its cash burn rate and said it was seeking strategic collaborations, after striking a $30 million loan agreement with Saudi Arabian biopharma Lifera in the summer.