Axcella Health Inc.: restructuring charge — Axcella cuts 85% workforce, suspends NASH trial, focuses on Long COVID

Axcella Health Inc.

Board approves reduction in force of ~85%, affecting CFO Robert Crane and Chief People Officer Virginia Dean, effective Dec 14.
Records Q4 2022 restructuring charge of up to $2.1M for severance and related costs.
Immediately suspends EMMPACT Phase 2b trial of AXA1125 for NASH to focus on Long COVID Fatigue.
Reaches agreement with SLR Investment Corp. to pay down remaining debt under Loan and Security Agreement.
Initiates strategic alternatives review with investment bank to maximize shareholder value; no assurances of transaction.

item 2.05 item 5.02 item 7.01 item 8.01 item 9.01

Executive movements

Machine-extracted from this filing. Every card cites the SEC source. See all recent executive movements.

Departed

Robert Crane

Chief Financial Officer

Axcella Health Inc.

Effective: 2022-12-14
Filed: December 15, 2022, 6:59 PM ET

Robert Crane, the Company’s Chief Financial Officer and principal financial officer and Virginia Dean, the Company’s Senior Vice President, Chief People Officer will step down from their positions effective December 14, 2022.

Departed

Virginia Dean

Chief People Officer

Axcella Health Inc.

Effective: 2022-12-14
Filed: December 15, 2022, 6:59 PM ET

Robert Crane, the Company’s Chief Financial Officer and principal financial officer and Virginia Dean, the Company’s Senior Vice President, Chief People Officer will step down from their positions effective December 14, 2022.

Key facts

Extracted from this filing and checked against the source text.

Executive change SEC 8-K Item 5.02 confidence 0.95

Robert Crane resigned as Chief Financial Officer at Axcella Health Inc..

Action: resigned
Role: Chief Financial Officer

Exact text from the filing

Robert Crane, the Company’s Chief Financial Officer and principal financial officer and Virginia Dean, the Company’s Senior Vice President, Chief People Officer will step down from their positions effective December 14, 2022.

View on SEC.gov

Executive change SEC 8-K Item 5.02 confidence 0.95

Virginia Dean resigned as Chief People Officer at Axcella Health Inc..

Action: resigned
Role: Chief People Officer

Exact text from the filing

Robert Crane, the Company’s Chief Financial Officer and principal financial officer and Virginia Dean, the Company’s Senior Vice President, Chief People Officer will step down from their positions effective December 14, 2022.

View on SEC.gov

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Axcella Health Inc. announced a restructuring with charges of up to $2.1 million (approximately 85% of the Company's workforce).

Type: restructuring
Charge: up to $2.1 million
Headcount: approximately 85% of the Company's workforce

Exact text from the filing

As part of this restructuring, the Board approved a reduction in force of approximately 85% of the Company's workforce. Robert Crane, the Company's Chief Financial Officer and Virginia Dean, the Company's Senior Vice President, Chief People Officer were each part of the reduction in force. The reduction in force is a measure to manage costs and conserve cash resources with the goal of maximizing the opportunities available to Axcella during the Board's review of strategic alternatives to maximize shareholder value. The Company expects to record a charge of up to $2.1 million in the fourth quarter of 2022 relating to the reduction in force, which is expected to consist of employee severance and other restructuring related costs and expenses.

View on SEC.gov

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Source: SEC EDGAR

accession 0001104659-22-127154

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