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Histogenics terminates CEO, COO, reduces staff under cost-saving restructuring

Histogenics Corp. is terminating the positions of CEO Adam Gridley and COO Stephen Kennedy as part of a restructuring plan to reduce costs and eliminate all but one of the company's employees.

Histogenics expects to record a one-time charge of about $2.2 million in severance and related expenses. The company intends to substantially complete the restructuring by the end of the first quarter.

Histogenics' evaluation of strategic alternatives is expected to be handled by Gridley and Kennedy, who will continue to consult the company, along with up to four additional employees who the company intends to engage as consultants upon their separation from service.

Gridley will retain his statutory titles as president, treasurer and secretary of the Waltham, Mass.-based clinical-stage company and will remain a director of Histogenics but will not receive compensation for the position.