Marina Biotech, a nucleic acid-based drug discovery and development company based in Bothell, Wash., announced that it does not currently have adequate funding to continue implementing its business plan.
To conserve available cash, Marina Biotech management has implemented a furlough of approximately 90% of its employees and ceased most day-to-day operations, including the ongoing FAP clinical trial. Additionally, the company has negotiated an extension on its secured loan, which is now due and payable in its entirety June 15, 2012, through the issuance to the secured lenders of five-year warrants to purchase approximately 425,000 shares of common stock.
Marina Biotech has previously engaged banking teams to assist in identifying strategic opportunities and to seek additional funding. Although these efforts are on-going, no assurances may be made as to their success. If sufficient additional funds are not received in the near-term, the company may need to further reduce or cease operations completely.