Marina Biotech – MRNA – Entered into a licensing agreement with Novartis Institutes for Biomedical Research, Inc.

PINKSHEETS: MRNA), a leading nucleic acid-based drug discovery and development company, provided an update on its operations. MRNA continues to seek adequate funding to implement its business plan and has accomplished the following in order to generate revenue, reduce debt and conserve cash:

• Entered into a licensing agreement with Novartis Institutes for Biomedical Research, Inc. for Marina Biotech’s Conformationally Restricted Nucleotide (CRN) technology for the development of both single- and double-stranded oligonucleotide therapeutics. The Company received $1 million in upfront fees for the non-exclusive license.
• Negotiated an amendment and extension on the Company’s secured loan such that, among other things, if the Company effects any merger or consolidation that results in a change-of-control of the Company at any time prior to December 31, 2012, any unpaid principal and interest (after giving effect to the payment to the holders of all sums received from the sale of surplus equipment) will convert to common stock, thus eliminating the Company’s cash obligation to its secured lender. Further, the maturity date of the secured loan was extended to December 31, 2012 (unless earlier converted to common stock).
• Negotiated with certain of the Company’s unsecured creditors to reduce its cash obligations through the issuance of shares of common stock. The Company has committed to issue an aggregate of approximately 3.2 MM shares of common stock to settle outstanding amounts due to such vendors in the aggregate amount of approximately $1.1 MM. The Company believes it will be able to issue an additional 2.5 MM shares of common stock to further settle amounts due to vendors in satisfaction of an additional $725,000 in outstanding obligations.

“We continue to work hard to realize the true value of the nucleic acid platform we’ve created over the past years,” stated J. Michael French, President and Chief Executive Officer of Marina Biotech. “We have taken severe measures to reduce our cash obligations to both secured and unsecured creditors and have executed agreements to reduce our outstanding obligations by approximately $2.5 MM. We have accomplished this reduction through the issuance, or potential future issuance of shares of our common stock to such creditors. In addition, we are applying the funds that we received from the recent Novartis license, in part, to maintain our intellectual property estate and regain compliance with regard to our ongoing SEC reporting obligations. Finally, we have realigned the Company and Board to achieve near-term strategic opportunities.”

About Marina Biotech, Inc. – MRNA

Marina Biotech (MRNA) is a biotechnology company focused on the development and commercialization of oligonucleotide-based therapeutics utilizing multiple mechanisms of action including RNA interference (RNAi) and messenger RNA translational blocking.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.