Emmaus Life Sciences, Inc. appointed new CEO

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers


By letter dated June 8, 2022, Lori Teranishi, Alfred Lui, M.D., and Jane Pine Wood graciously tendered their resignation as directors of Emmaus Life Sciences, Inc. ("we," "us," "our," "Emmaus" or the "company") at the request of Yutaka Niihara, M.D., M.P.H., the company's Chairman of the Board and Chief Executive Officer. A copy of the letter of resignation is included as Exhibit 99.1 to this Report and incorporated herein by reference.


The restructuring of our Board of Directors was made in connection with recent measures by management to reduce our overall personnel costs. As each director has been very important for the company, it was a very difficult decision to downsize the Board. After consulting with all related parties, including major stockholders, the company chose to ask the three newest members of the Board to step down.


Other planned reductions in operating expenses include a voluntary, three-month, 30% reduction in Dr. Niihara's salary and similar 10% reductions in the salaries of certain other senior management personnel, and elimination or reduction in spending on certain non-essential activities, including suspension of certain activities by EJ Holdings, Inc., our Japanese joint venture, relating to the retrofitting of its facility in Ube, Japan. Management, under the supervision of our Board of Directors, continually assesses the status of our business and operations and may determine to undertake additional cost-cutting measures or make other changes in our business or operations as our finances may require or permit.


On behalf of our stockholders and other constituents, management wishes to thank Ms. Teranishi, Dr. Lui and Ms. Wood for their services and their willingness to contribute to our restructuring efforts. Management believes that these efforts, combined with anticipated increased sales of Endari in the U.S. and in the United Arab Emirates and other Gulf Cooperation Council countries, will help us to achieve positive income from operations later this year. We will continue to use our best efforts to serve patients, customers and other constituents.