“Although Archus Orthopedics has been performing very well, we have the unfortunate luck to be a relatively mature, but still pre-revenue company, in need [of] sustaining capital in an extremely challenging financing market,” said Archus Orthopedics chief executive officer Jim Fitzsimmons.
“Outside funding for companies at our stage is particularly difficult to obtain these days. We recently closed a bridge financing with our current investors. We also made the difficult decision to substantially reduce our headcount and scale back operations in order to reduce our burn rate and extend the runway provided by our current cash.”
The company’s board is “confident that we will be able to engineer a successful outcome for the company,” Fitzsimmons said. When asked if that means more financing, a partnership, or an acquisition, he added, “We are looking at all options going forward to maximize shareholder value.” He wouldn’t say how many employees remain at the company.
