Short and Sweet Press Release Says A LOT -
Cellceutix Corporation (CTIX) has been quiet for several months now, but the Company released very good news today. An agreement has been reached with former CEO George Evans to address all outstanding issues, which is great to allow Cellceutix to continue to focus on the tasks at hand, but, even more importantly, the thought of a reverse split to handle the settlement has now been canceled. Additionally, the shares that will be bought back from Mr. Evans will be retired. That means that nearly 5 million shares will be removed from the overall outstanding share balance, which is only in the area of 90 million presently. As clinical trials approach, Cellceutix has continued to maintain its share structure for the good of its shareholders and is even going to reduce that amount further. The full press release:
Cellceutix Announces Settlement with Former CEO
BEVERLY, MA — (Marketwire) — 02/14/11 — Cellceutix Corporation (PINKSHEETS: CTIX) announced today that it has reached a settlement agreement on all outstanding claims and issues between the Company and George W. Evans, the Company’s former Chief Executive Officer.
The terms of the agreement provides that the Company shall purchase 4,602,312 common shares held by Mr. Evans and/or Mr. Evans’ sons over a period of three years for a total sum of one million dollars. All options granted to Mr. Evans will be cancelled. The purchased shares will then be retired by the Company.
The Board wishes to thank Mr. Evans for his leadership and contribution to the Company’s development over the past 3 years.
Rescission of authorization to reverse split of common stock
In a separate board action, the board unanimously voted to rescind the authorization to effect a reverse split of its common stock.