SpectraScience Inc. (OTC:SCIE) sent a letter to its shareholders yesterday announcing plans to reallocate its businesses to focus on more specific markets.
The letter came with news that its recently appointed chair Mark McWilliams replaced chief executive Jim Hitchin as interim CEO.
The San Diego, Calif.-based company said the key to growing its value is a "clear change" in strategy.
"There must be greater accountability, as well as the investment and deployment of a more appropriate set of resources to deliver the level of execution that we believe is achievable," according to the letter to shareholders.
SpectraScience believes that its WavSTAT diagnostics system is well-positioned for the colon cancer screening market. The company also hopes to bring the device to the esophageal cancer screening market in the future, but said it will "only spend time and resources with partners in markets where there is a clear business case" going forward.
With several distribution deals pending in the European Union and a number of clinical studies and trials under review, it’s unclear which are vulnerable to the restructuring plans. The company said it expects to make an announcement regarding the specifics of its business realignment in the coming weeks.
Former CEO Jim Hitchin resigned from his chairmanship Oct. 8, when McWilliams, who has served on the company’s board since 2004, assumed the role. SpectraScience’s board created a search committee to recruit a new CEO.
The company did not reveal any more details about Hitchin’s departure. “The company is planning its future growth strategy and as a part of best practices and good governance is separating the Chairmanship from the Chief Executive Officer role consistent with Sarbanes-Oxley guidance." Hitchin said at the time.
As of Oct. 25, SpectraScience had approximately $4.0 million in cash and cash equivalents, and no debt. The company’s board does not expect that it will require any additional working capital to execute the restructuring plan for fiscal year 2011.