Metabolix provides updates on strategic restructuring, cash position
Metabolix announced the management team that will lead Yield10 Bioscience. The company also provided an update on its strategic restructuring and cash position. In July, Metabolix announced a strategic restructuring under which Yield10 Bioscience is becoming the company's core business. In connection with the restructuring, the company is also working to rebrand itself as Yield10 Bioscience. Metabolix CEO Joseph Shaulson is stepping down from his current executive responsibilities and will provide transition support to the management team through the end of 2016. He will also remain on the company's board. Johan van Walsem, Metabolix COO, has been leading the wind down of the company's biopolymer operations and transfer of biopolymer assets to CJ CheilJedang. He is expected to leave the company at the end of October. The company previously announced plans to reduce staffing levels to approximately 20 people in connection with its strategic restructuring. Current headcount is 29 and is expected to reach the target level of approximately 20 during Q4 as activities related to the wind down of the company's biopolymer operations and transfer of biopolymer assets to CJ CheilJedang are completed. In connection with the wind down of biopolymer operations, Metabolix ceased pilot production of biopolymer materials and reached agreements with the owner-operators of its biopolymer pilot production facilities regarding the termination of these services. The company incurred cash restructuring costs of approximately $0.9M and issued 275,000 shares of common stock in Q3 related to these agreements and other restructuring activities. Remaining cash restructuring costs associated with the company's strategic restructuring are estimated at approximately $2.5M and are expected to be paid out over the next 12 to 24 months. Metabolix had approximately $9.7M in cash at September 30. The company currently estimates that its cash on hand together with expected cash receipts from its outstanding government research grants will be sufficient to support its operations into Q4 of 2017. This includes both the estimated cash operating cost of the Yield10 Bioscience business as well as remaining cash restructuring costs expected to be incurred during the period.