The Obseva SA (NASDAQ: OBSV) stock price rallied 64.1% after announcing a massive reorganisation process that will see it delist from the Nasdaq Capital Market. The company plans to close its US operations and fire its US-based team, including executives and other employees.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The biopharmaceutical company focused on developing novel treatments for women’s health announced the downsizing of its US executive team, which saw ObsEva’s Chairwoman, Annette Clancy, and Board members Brian O’Callaghan, Stephanie Brown, Anne VanLent, and Ed Mathers confirm that they will not stand for re-election at the next general meeting.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Tickmill Regulated by the FCA – Read our Review
- Admirals (Admiral Markets) More than 4500 stocks & ETFs available – Read our Review
- Spreadex Spreadex has been around for a long time – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Obseva has nominated its founder Dr Ernest Loumaye as its Board chairman and Catarina Edfjäll as a Board member. Brian O’Callaghan stepped down from his CEO role on February 23, 2023, with Will Brown, the current CFO, appointed Interim Chief Executive Officer and CFO.
The company also fired Brandi Howard, its Chief Clinical Officer, Clive Bertram, its Chief Commercial Officer, and Luigi Marro, Chief Transformation Officer, on the same day. Obseva is looking to hire a new CEO, who will be based in Geneva, Switzerland. After the recent changes, the company expects to save about $3.5 million in employee costs annually.
Furthermore, Obseva retired debt worth $6.5 million from specific funds and accounts managed by JGB Management, Inc. The company did not pay the $1.1 million prepayment penalty but instead paid $566,000 in cash and $250,000 in the form of about 1.5 million common shares.
Annette Clancy, Chairwoman of the Board of Directors, said: “On behalf of the Board of Directors, I extend my sincere gratitude to Brian and the rest of the departing executive team for their leadership and contributions to ObsEva, and to all our departing employees for their efforts on behalf of the Company. The Board believes we are better positioned to deliver shareholder value following these difficult reorganization decisions. We look forward to strengthening the company by continuing the clinical development of nolasiban and with the future development of our out-licensed programs.”
Over 14.71 million Obseva shares had changed hands at writing as retail investors piled into the stock.
*This is not investment advice.
Obseva stock price.
The ObsEva stock price rallied 64.10% to trade at $0.1362, from Friday’s closing price of $0.0830.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.