San Diego, California, USA
October 21, 2024
Projected Cost Savings of Approximately $10 Million on Annualized Run-Rate Basis and Expected to Reduce Cash Use by Approximately 20%
Cibus, Inc. (Nasdaq: CBUS) (the "Company"), a leading agricultural technology company that develops plant traits to license to seed companies for royalties, announced a restructuring and cost reduction initiatives, including a reduction in force (“RIF”), to optimize the Company’s business and cost structure in alignment with its strategic priority to advance its nearest-term commercial opportunities.
The Company expects these actions, along with other initiatives, to generate cost savings of approximately $10 million on an annualized run-rate basis. When these and other initiatives are fully implemented by early 2025, the Company expects them to translate to a reduction in monthly cash use by approximately 20%. These initiatives are a result of the Company’s realigned organization focused on its herbicide resistant traits in Rice, continuing development of its Soybean platform and leveraging its family of multi-crop traits that include disease tolerance in Canola and Winter Oilseed Rape. The Company will also continue to opportunistically pursue partner-funded projects. The RIF is expected to result in one-time charges for accrued vacation and severance of approximately $0.35 million in the fourth quarter of 2024.
Rory Riggs, Co-Founder, Chairman, and CEO of Cibus stated, “This restructuring is a necessary step for the Company in our continued transformation from an R&D-focused company to the first commercial stage gene editing company in agriculture with the support from top-tier global seed companies. Our streamlined organization will allow us to more efficiently focus our efforts on executing on our product launches with our herbicide resistant traits in Rice and traits for pod shatter reduction in Canola, while maintaining the ability to capitalize on our continued positive progress developing our Soybean platform and advancing our traits for Sclerotinia resistance and herbicide tolerance HT2 trait.”
Mr. Riggs added, “I would like to express our appreciation to each of our impacted colleagues. They have each made meaningful contributions to the development of Cibus and we are committed to supporting them through this transition.”
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