Vasogen Inc. (Vasogen), a in vitro diagnostics company, has reported a net loss and comprehensive loss of CAD16.1 million, or CAD0.72 loss per common share, for the full year of fiscal 2008, compared with the net loss and comprehensive loss of CAD28.8 million, or CAD1.46 loss per common share, in the in the previous year-end. The net loss for the fourth quarter of 2008 was CAD0.8 million, or $0.03 per common share.
Corporate Update
During 2008, we implemented our restructuring plan to significantly reduce the rate at which we use our cash and to focus our efforts on opportunities that the Board and Management believe are most likely to provide shareholder value. As a result, we discontinued maintaining the necessary quality processes and personnel to support European commercialization and any clinical development of our Celacade technology, materially reduced expenses associated with the vice president series of drugs, and reduced the number of full-time employees from 104 to six. We also retained JMP Securities LLC to assist in exploring potential strategic alternatives. To further reduce the rate at which we use our cash during our strategic review process, in February 2009, we further reduced our number of full-time employees to two. As part of this restructuring, Chris Waddick, our president and chief executive officer (CEO), will be terminated effective March 1, 2009. Waddick has agreed to fulfill the role of CEO, in a consulting capacity at a substantially reduced compensation, to assist the board in bringing closure to the ongoing strategic review process.
Pursuant to our restructuring plan, our board of directors and management has been actively involved in a process of screening, reviewing, and short-listing potential opportunities including the sale of the company, or a merger or acquisition, and exploring the monetization of certain tangible and intangible assets. The process has also included a review of the potential out-licensing of assets, lapsing of patents and patent applications, asset divestiture, or liquidation of the company. At this time, we have significantly narrowed down the number of third party proposals under consideration. If a definitive agreement that the board believes is in the best interest of our shareholders cannot be reached in the near future, the Board will consider the other alternatives that it has been evaluating. These alternatives include the potential to realize value from the monetization of certain intangible assets either alone or potentially in combination with a strategic transaction. The board will continue to assess the merits of these options relative to liquidating the company and distributing the remaining cash to the shareholders.
As part of our restructuring, a new tenant was secured for our 37,111 sq. ft. leased facility located at 2505 Meadowvale Boulevard in Mississauga, Ontario, and we completed a lease surrender agreement with our landlord. As a result, our lease for this facility terminated on September 30, 2008 and our new corporate address is 4 Robert Speck Parkway, 15th Floor, Mississauga, Ontario, L4Z 1S1.
On April 24, 2008, we received a letter from the Listing Qualifications Department of The NASDAQ Stock Market indicating that the minimum closing bid price of our common stock had fallen below US$1.00 for 30 consecutive trading days, and therefore, we were not in compliance with Marketplace Rule 4310(c)(4) (the “Rule”). In accordance with the NASDAQ Marketplace Rule 4310(c)(8)(D), we were provided a compliance period of 180 calendar days, or until October 21, 2008, to regain compliance with this requirement. In October 2008, the NASDAQ Stock Market had suspended the enforcement of the rules requiring a minimum $1.00 closing price until January 20, 2009. Subsequently, on December 9, 2008, the NASDAQ extended this suspension. Accordingly, the NASDAQ will not take action to delist any security, including our shares, for a violation of the minimum bid price rule during the suspension, which now has been extended until April 20, 2009.
As at November 30, 2008, we had cash and cash equivalents of CAD8.6 million and had 22.4 million common shares issued and outstanding. Other than our accounts payable and accrued liabilities we do not have any debt. As of January 31, 2009, our cash balance was CAD8.5 million.
Subsequent to November 30, 2008 we entered into an agreement to sell a United States patent application and its related foreign counterparts for $0.4 million. This device-based intellectual property has not been used to date in the Celacade System; however, we have retained rights to this technology for any potential use as it relates to its Celacade System.