Humanigen plunges after warning on inability to continue as going concern

In a regulatory filing earlier, Humanigen stated: “The company’s negotiations with a privately held biopharmaceutical company relating to a proposed business combination, as disclosed in the company’s Quarterly Report on Form 10-Q filed on May 15, 2023, have ended without execution of a definitive agreement. In addition, the company has been unsuccessful in its attempt to identify and complete another strategic or equity financing transaction in the first half of 2023 on terms sufficient to enable the company to regain compliance with applicable Nasdaq listing requirements within the extended compliance period of August 21, 2023. The company further has been unsuccessful in raising debt or equity financing in sufficient amounts and with acceptable terms to fund the company’s operations going forward. In light of these developments and the matters discussed above under Item 3.01, on July 21, 2023, the company notified the Nasdaq Hearings Panel that it does not expect to be able to demonstrate compliance with all applicable criteria for listing on The Nasdaq Capital Market by August 21, 2023, including the $1.00 minimum bid price per share requirement set forth in Nasdaq Listing Rule 5550(a)(2) and the $35 million market value of listed securities requirement set forth in Nasdaq Listing Rule 5550(b)(2). As a result, the company received a letter on the evening of July 24, 2023 indicating that the Panel will delist the shares of the company from the Nasdaq Capital Market and trading in the company shares will be suspended from Wednesday, July 26, 2023. The shares will commence trading on the OTC Pink Market. The suspension from trading and delisting from the Nasdaq Capital Market likely would adversely affect the liquidity of the company’s common stock and its ability to raise additional capital. In light of the above, and the company’s limited cash and cash equivalents, the company anticipates that it will not be able to continue as a going concern and is exploring all restructuring options, which may include commencing a bankruptcy or other insolvency proceeding sometime in the third quarter of 2023. In that regard, the company is evaluating term sheets relating to potential sales of assets in a bankruptcy proceeding. 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.” In morning trading, Humanigen shares have fallen 14c, or 74%, to 5c.