Cibus Announces Steps to Implement More Streamlined Business Focus on its Nearest Term Revenue Opportunities

Rhea-AI Summary

Cibus (NASDAQ:CBUS), an agricultural technology company, announced a reduction in force (RIF) as part of implementing its streamlined business strategy. The company will focus on its nearest-term revenue opportunities, particularly in rice weed management traits and biofragrance products.

The restructuring will incur one-time charges of approximately $0.5 million in Q3 2025. Through these initiatives, Cibus aims to reduce its annual net cash usage to approximately $30 million by 2026. The company will prioritize its Trait Machine™ gene editing processes for HT1, HT3, and other trait combinations while maintaining customer-funded crop-based sustainable ingredients programs.

Positive

• None.

Negative

• One-time restructuring charges of $0.5M in Q3 2025
• Reduction in workforce affecting company operations
• Narrowing of business focus may limit growth opportunities in other areas

Insights

Biotechnology Financial Analyst

Cibus' staff reduction aims to cut cash burn to $30M by 2026, focusing on rice traits and bio-ingredients while deprioritizing other programs.

Cibus is implementing a significant strategic pivot through a reduction in force that will cost $0.5 million in Q3 2025 but is expected to reduce annual cash burn to approximately $30 million by 2026. This restructuring represents a critical narrowing of focus for the agricultural biotechnology company, which is concentrating resources on its most commercially viable near-term opportunities.

The company is prioritizing three main areas: (1) weed management traits in rice through its HT1, HT3 and other trait combinations; (2) customer-funded sustainable ingredients programs; and (3) bio-based fermentation fragrance products. Notably, this restructuring appears to be deprioritizing work on traits for canola, winter oilseed rape (WOSR), and soybean, which are now being positioned as partnership opportunities rather than core internal development programs.

This strategic realignment suggests Cibus is responding to capital constraints by focusing on its most promising revenue-generating opportunities while reducing expenditures on longer-term projects. The company's Trait Machine gene editing platform remains central to its business model, but with a narrower application focus. Management's emphasis on seeking external partnerships for its non-core trait portfolio indicates a shift toward a more capital-efficient business model that leverages industry collaborations rather than fully internal development for certain crops.

The restructuring signals both financial discipline and a recognition that the company needs to concentrate resources on areas with the clearest path to commercialization and revenue generation. For an agricultural technology company developing traits for licensing, this more focused approach may enhance the probability of near-term commercial success, though potentially at the expense of longer-term growth across multiple crop platforms.

Previously Announced Strategy Focus Prioritizes Opportunities in Rice and Biofragrance Products and Sustainable Ingredients with Initiatives Expected to Reduce Annual Net Cash Usage to Approximately $30M by 2026

Cibus Well Situated to Pursue Partner Funding to Support its Advanced Productivity Trait Portfolio

SAN DIEGO, July 23, 2025 (GLOBE NEWSWIRE) -- Cibus, Inc. (Nasdaq: CBUS) (the "Company"), a leading agricultural technology company that develops plant traits to license to seed companies for royalties, announced a reduction in force (“RIF”) as a pivotal step in implementing its previously announced streamlined business focus, prioritizing its nearest-term and currently funded commercial opportunities. The RIF is expected to result in related one-time charges of approximately $0.5 million in the third quarter of 2025.

Cibus expects the RIF, along with other initiatives, to reduce its annual net cash usage to approximately $30 million by 2026. The Company’s streamlined priorities and resulting restructuring initiatives are intended to optimize Cibus’ Trait Machine^TM gene editing processes with a focus on the commercial advancement of its HT1, HT3 and other trait combinations for weed management traits in Rice, while continuing advancement of its customer-funded and supported crop-based sustainable ingredients programs and bio-based fermentation fragrance products.

Dr. Peter Beetham, Co-Founder and Interim CEO of Cibus stated, “The whole Cibus team has made incredible contributions to advance the burgeoning gene edited trait industry. We are proud of the leadership this team has shown in the development of value-added crop traits. As in many industries, we also see a natural evolution in our markets that drives our commercial focus and development efforts. While we are streamlining to prioritize our efforts on weed management in Rice, sustainable ingredients and biofragrance products, I believe we have significant opportunities to capitalize on our remaining portfolio of developed and advanced traits through industry partnerships in areas such as disease resistance in Canola, WOSR, and Soybean.”

About Cibus

Cibus is a leader in gene edited productivity traits that address critical productivity and sustainability challenges for farmers such as diseases and pests, which the United Nations estimates cost the global economy approximately $300 billion annually. Cibus’ long-term focus is productivity traits for farmers for the major global row crops. Cibus is not a seed company. It is a technology company that uses proprietary high-throughput gene editing technology to develop traits at a fraction of the time and cost of conventional breeding and to license them to seed companies in exchange for royalties on seed sales.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable securities laws, including The Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact included herein, including statements regarding Cibus' revenue opportunities, cost-savings initiatives, anticipated cash burn reductions and the timing thereof and anticipated costs associated with the RIF. Forward-looking statements may be identified by words such as "anticipate," "believe," "intend," "expect," "plan," "scheduled," "could," "would" and "will," or the negative of these and similar expressions.

These forward-looking statements are based on the current expectations and assumptions of Cibus' management about future events, which are based on currently available information. Cibus' actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors. These forward-looking statements are subject to numerous risks and uncertainties, many of which are difficult to predict and beyond the control of Cibus. The industry in which Cibus operates is emerging and subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the "Risk Factors" section of Cibus' Annual Report on Form 10-K which was filed with the Securities and Exchange Commission (the "SEC") on March 20, 2025 and other subsequent reports on Forms 10-Q and 8-K as may be filed with the SEC. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. 

In addition, the forward-looking statements included in this press release represent Cibus' views as of the date hereof. Cibus specifically disclaims any obligation to update such forward-looking statements in the future, except as required under applicable law. These forward-looking statements should not be relied upon as representing Cibus' views as of any date subsequent to the date hereof.

CIBUS CONTACTS:

INVESTOR RELATIONS
Jeff Sonnek
jeff.sonnek@icrinc.com

MEDIA RELATIONS
media@cibus.com
Colin Sanford
colin@bioscribe.com
203-918-4347

FAQ

What restructuring changes did Cibus (CBUS) announce in July 2025?

Cibus announced a reduction in force (RIF) to streamline operations, focusing on rice weed management traits and biofragrance products, with one-time charges of $0.5M expected in Q3 2025.

How much will Cibus (CBUS) reduce its annual cash usage by 2026?

Cibus expects to reduce its annual net cash usage to approximately $30 million by 2026 through the RIF and other initiatives.

What are the main focus areas for Cibus after the restructuring?

Cibus will focus on HT1, HT3, and other trait combinations for weed management in Rice, along with customer-funded sustainable ingredients programs and bio-based fermentation fragrance products.

What partnership opportunities is Cibus pursuing after the restructuring?

Cibus is pursuing industry partnerships in areas such as disease resistance traits for Canola, WOSR, and Soybean to capitalize on its portfolio of developed traits.

When will Cibus implement the workforce reduction?

The reduction in force will be implemented in Q3 2025, with related one-time charges of approximately $0.5 million expected during this period.