2023-07-25 06:54:08 ET
Nano-cap biotech Humanigen ( NASDAQ: HGEN ) fell ~70% pre-market Tuesday after announcing that Nasdaq has decided to delist its shares from the exchange and the company is evaluating all strategic options, including a potential bankruptcy.
Accordingly, the shares of the COVID-19 drug developer will be suspended from trading on Nasdaq on Wednesday, July 26, 2023, and trading will move to the OTC Pink Market, Humanigen ( HGEN ) said in a regulatory filing late Monday.
Citing inadequate cash and cash equivalents, the company said it will not be able to continue as a going concern and is evaluating all strategic options, including a potential bankruptcy filing in Q3 2023.
"Given the Company’s lack of liquidity, any such bankruptcy filing may result in a complete or substantial loss of value for holders of our common stock," Humanigen ( HGEN ) warned investors.
In addition to non-compliance with requirements related to the minimum bid price per share and $35 million market cap of listed securities, the Short Hills, New Jersey, biotech cited a series of sudden resignations as the reason for delisting.
Humanigen ( HGEN ) denied that the resignations of board members John Hohneker, Cheryl Buxton, and Kevin Xie in July were due to any disagreements between the company and the executives.
For further details see:
Humanigen to weigh bankruptcy as shares delist from Nasdaq