Stent coating developer Elutex Ltd. (TASE:ELTX) today sent all its employees home, except for the CFO. The measure is aimed at cutting expenses, after the company's board decided to suspend development activity earlier this month.
Elutex's board decided that the company lacks the resources or incentive to move on to the commercial stage of its product, even though it had NIS 13.6 million in cash at the end of September 2008. The board there fore decided to put the company into suspended animation and seek a partner who will undertake to continue the company's business.
The period that each employee will stay at home will be determined by their individual work contracts, but no employee will be terminated before April 7, when a general shareholders meeting is scheduled to discuss the board's decision to suspend activity.
Elutex CEO Norman Sandberg and science program director Yair Levy are among the employees being sent home. Sandberg will officially remain CEO until July, when his contract expires.
Biomedix Incubator Ltd. (TASE:BMDX) controls Elutex through Meytav Technological Enterprises Innovation Center Ltd..
Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2009
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