Athersys Inc (NASDAQ: ATHX) has terminated its equity purchase deal with Aspire Capital fund LLC. The firm is still considering additional financial possibilities to sustain ongoing operations. Athersys learned of the cancellation of the stock purchase agreement on July 6, 2022, with immediate effect following multiple conversations with Aspire Capital.
Aspire Capital its terminates stock purchase agreement
Since last year Athersys has been a twilight penny stock but has faced various hurdles in recent months, and the termination of the stock purchase agreement adds to the list of challenges. The stock purchase agreement had in place from May 12, 2022
CEO Dan Camardo said, “As we execute on our transformation plan, which includes reducing expenses across several areas, we will continue to explore financing options that we believe are in the best interest of our shareholders. We want to thank Aspire for their support over the past decade. We will provide a more detailed business update at our upcoming annual stockholder meeting on July 28, 2022.”
Additionally, the company has named Mr. Camardo its Principal Financial Officer and Principal Accounting Officer while it hunts for a permanent Chief Financial Officer. In relation to this position, Mr. Camardo won’t get any additional pay or benefits.
Aspire Capital had given $100 million to purchase Arthersys shares
Aspire Capital first gave up to $100M in a total number of its common shares at $0.001 per Athersys share to Aspire Capital under the share purchase agreement, as per the equity purchase agreement submitted to the SEC. Over the course of the purchase deal, which could have ended in 2024, the deal would permit periodic sales of the shares to Aspire Capital.
According to its Form 10-K presented in March, the firm may need additional funding to advance products through development to market and other activities. However, funding is not the only huddle the company faces. In May, its principal stem cell therapy failed again, with the 206-person study carried out in Japan failing to meet the primary endpoint of “excellent outcome.”