Item 2.05. Costs Associated with Exit or Disposal Activities.
On August 18, 2023, Organovo Holdings, Inc. (the “Company”) announced to its employees a plan to reduce the Company’s workforce, effective August 25, 2023, by approximately six employees, which represents approximately 24% of its employees as of August 18, 2023. The Company has refocused operations on FXR314, its clinical drug candidate. This decision to reduce the Company’s workforce was made in order to focus spending on the Company’s clinical program for FXR314, reduce ongoing operating expenses not related to clinical expenses, and extend the Company’s cash runway.
The terms of the severance packages to be provided to certain affected employees are being negotiated and finalized. As a result, the Company is unable to estimate the amount and timing of the reduction in force charges. Once determined, the Company will file an amendment to this Current Report on Form 8-K to provide an estimate and timing of the reduction in force charges.
Item 5.02. Departure of Directors or Certain Officers Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
As part of the reduction in force described above in Item 2.05, on August 16, 2023, Tom Jurgensen, the Company’s General Counsel and Corporate Secretary, and Jeffrey Miner, the Company’s Chief Scientific Officer, were each notified that his employment with the Company would be terminated. Each of Mr. Jurgensen’s and Mr. Miner’s last day of employment will be August 25, 2023.
The Company expects to enter into a consulting agreement with Dr. Miner pursuant to which he will provide certain consulting services to the Company for a period of time following the termination of his employment with the Company.
Forward-Looking Statements
This Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Exchange Act, which are subject to the “safe harbor” created by those sections. Forward-looking statements can be identified by words such as “expects,” “projects,” “may,” “will,” “could,” “would,” “should,” “believes,” “anticipates,” “estimates,” “intends,” “plans,” “potential,” “promise” or similar references to future periods. Examples of forward-looking statements in this Form 8-K include, without limitation, statements regarding the reduction in force, the Company’s operational focus on FXR314, the effect of the reduction in force, anticipated charges and any anticipated cost savings associated therewith and severance packages. Forward-looking statements are statements that are not historical facts, nor assurances of future performance. Instead, they are based on the Company’s current beliefs, expectations and projections regarding any strategic transaction process, the ability to advance its research and development activities and pursue development of any of its pipeline products, its technology, its product and service development opportunities and timelines, its business strategies, customer acceptance and the market potential of its technology, products and services, its future capital requirements, its future financial performance and other matters. These risks and uncertainties and other factors are identified and described in more detail in the Company’s filings with the SEC, including its Annual Report on Form 10-K filed with the SEC on July 14, 2023, as such risk factors are updated in its most recently filed Quarterly Report on Form 10-Q filed with the SEC on August 10, 2023. As a result, you should not place undue reliance on any forward-looking statements. Except to the limited extent required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events or circumstances or to reflect the occurrence of unanticipated events.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Number | | Description |
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| 104 | | Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL). |
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