Avant Immunotherapeutics Inc - Current report filing (8-K)
09 Juni 2008 - 10:29PM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported):
March 7, 2008
AVANT
IMMUNOTHERAPEUTICS, INC.
(Exact name of
registrant as specified in its charter)
Delaware
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0-15006
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13-3191702
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(State or other
jurisdiction
of incorporation)
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(Commission File
Number)
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(IRS Employer
Identification No.)
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119 Fourth Avenue
Needham,
Massachusetts 02494-2725
(Address of
principal executive offices) (Zip Code)
(781) 433-0771
(Registrants
telephone number, including area code)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
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Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
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Item 4.01. Changes in Registrants Certifying
Accountant
(a) On
March 7, 2008, AVANT Immunotherapeutics, Inc. (the Registrant)
completed the merger of Callisto Merger Corporation (Merger Sub), a wholly
owned subsidiary of the Registrant with and into Celldex Therapeutics, Inc.
(Celldex), a privately-held company (that transaction is referred to in this
Current Report on Form 8-K as the Merger). Pursuant to the terms of the Merger, shares
of the Registrants common stock were issued to the shareholders of Celldex and
Celldex became a wholly-owned subsidiary of the Registrant. The Merger was accounted for using the
purchase method of accounting and was treated as an acquisition by Celldex of
the Registrant with Celldex being considered the accounting acquirer based on
the application of criteria specified in Statement of Financial Accounting
Standards (SFAS) No. 141, Business Combination, (SFAS 141), even
though the Registrant was the issuer of common stock and the surviving legal
entity in the transaction. Because
Celldex was determined to be the acquirer for accounting purposes, the historical
financial statements of Celldex became the historical financial statements of
the combined company as of the closing of the Merger.
Celldexs
financial statements for 2006 and 2007 were audited by Ernst & Young
LLP (E&Y). Since 1994, the Registrants
financial statements were audited by PricewaterhouseCoopers (PwC). As of March 7, 2008, the effective date
of the Merger, the Audit Committee of the Registrant authorized PwC to continue
as the Registrants independent accountants for 2008. The Staff of the Securities and Exchange
Commission takes the position that in a transaction such as the Merger, there
is always a change of independent accountants (unless the same firm had served
as the independent accountants of both the acquiring and the acquired
companies). Accordingly, the Registrant
is providing the information in this Current Report on Form 8-K to report
that when the Registrants Audit Committee authorized PwC continue as the
Registrants independent accountants, as a technical matter that authorization
resulted in E&Y being dismissed as Celldexs independent accountants.
During
the past two years, E&Ys report on the financial statements of Celldex did
not contain an adverse opinion or disclaimer of opinion, was not qualified or modified
as to uncertainty, audit scope or accounting principles.
During
the two fiscal years preceding the dismissal of E&Y:
·
There were no disagreements between Celldex
or the Registrant and E&Y on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which disagreement(s), if not resolved to the satisfaction of E&Y, would
have caused it to make reference to the subject matter of the disagreement(s) in
connection with its report.
·
None of the reportable events listed in
paragraphs (a)(1)(v)(A) through (D) of Item 304 of Regulation S-K
promulgated by the Securities and Exchange Commission (Item 304) occurred,
except as set forth below.
2
·
Response to paragraph
(a)(1)(v)(A) of Item 304
- On May 7, 2008,
E&Y reported to the Registrants management and Audit Committee that it had
noted the following material weaknesses in Celldexs internal control over
financial reporting: (i) during 2007, Celldex did not maintain an
effective segregation of duties (specifically, certain authority and
responsibility were not appropriately assigned and delegated to employees
within the organization); and (ii) during 2007, Celldex did not maintain
effective internal control over the financial statement closing process
(specifically, Celldex did not maintain formal, written policies and procedures
governing the financial close and reporting process to ensure an accurate and
timely financial statement closing process).
The latter control deficiency resulted in misstatements to general and
administrative expense, research and development expense and accrued liability
accounts and related financial statement disclosures. Management of the Registrant had already
noted those material weaknesses as of March 31, 2008, and there was no
disagreement with E&Y concerning these matters. These material weaknesses were discussed with
the Registrants Audit Committee. The
Registrant has authorized E&Y to respond fully to the inquiries of the
successor accountant with respect to these matters, without limitations.
The
Registrant has provided E&Y with a copy of the disclosures that the
Registrant is making herein in response to Item 304 and requested that E&Y
furnish to the Registrant a letter addressed to the Securities and Exchange
Commission stating whether it agrees with the statements made by the Registrant
in response to Item 304 and, if not, stating the respects in which it does not
agree. The Registrant is filing the
letter received from E&Y in response to that request as an exhibit to this
Current Report on Form 8-K.
(b) As
discussed above, when the Registrants Audit Committee authorized PwC to
continue as the Registrants independent accountants, PwC became engaged as the
Registrants independent registered public accounting firm as of March 7,
2008. During the two most recent fiscal
years and through March 7, 2008, Celldex had not consulted with PwC
regarding either (i) the application of accounting principles to a
specified transaction, either completed or proposed; or the type of audit opinion
that might be rendered on Celldexs financial statements, and neither a written
report was provided to Celldex nor oral advice was provided that PwC concluded
was an important factor considered by Celldex in reaching a decision as to the
accounting, auditing or financial reporting issue; or (ii) any matter that
was either the subject of a disagreement, as that term is defined in Item
304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304
of Regulation S-K, or a reportable event, as that term is defined in Item
304(a)(1)(v) of Regulation S-K.
3
Item
9.01. Financial Statements
and Exhibits
Exhibit
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Description
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16.1
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Letter
from Ernst & Young addressed to the Securities and Exchange
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Commission,
dated June 9, 2008.
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4
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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AVANT
IMMUNOTHERAPEUTICS, INC.
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Date:
June 9, 2008
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By:
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/s/
Avery W. Catlin
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Avery
W. Catlin
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Title:
Senior Vice President and
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Chief
Financial Officer
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5
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