Humanigen, a biopharmaceutical company, has experienced a significant drop in its shares after a proposed business combination fell through. The company has now revealed in a filing with the U.S. Securities and Exchange Commission that it may be forced to cease operations and file for bankruptcy.
The stock has plummeted by 73%, reaching a mere 5 cents per share during late morning trading on Tuesday. In fact, it has seen a decrease of 57% over the course of this year, and a staggering 87% in the last 12 months.
While Humanigen had been in discussions with a privately held biopharmaceutical company about a potential business combination, the two parties failed to reach an agreement. In addition to this setback, Humanigen also shared that it was unable to secure a separate strategic or equity financing transaction by August 21st, which would have helped it regain compliance with the applicable Nasdaq listing requirements.
Moreover, Humanigen’s attempts to raise debt or equity financing in order to fund its ongoing operations have proven unsuccessful thus far, with the company stating that it hasn’t been able to secure sufficient amounts on acceptable terms.
Given these challenges, Humanigen anticipates that it will not be able to continue as a going concern. As a result, it is said to be exploring all possible restructuring options, including the potential initiation of bankruptcy or other insolvency proceedings during the third quarter.
Alongside this gloomy news, three of Humanigen’s board members have decided to resign from their positions – John Hohneker, Cheryl Buxton, and Kevin Xie. However, it is important to note that these resignations were not due to any disagreements with the company on matters relating to its operations, policies, or practices.
In light of these developments, Humanigen’s future remains uncertain as it seeks to navigate the challenges ahead and determine the best course of action.
