Biora Therapeutics announces a Chapter 11 filing to support a sale process and secure up to $10.25 million in financing.
Quiver AI Summary
Biora Therapeutics, Inc., a biotech company focused on developing smart pill-based therapies, has announced a chapter 11 bankruptcy filing to facilitate a sale process aimed at strengthening its balance sheet and furthering product development. The company has secured up to $10.25 million in debtor-in-possession financing from certain prepetition creditors, allowing it to continue normal operations while compensating employees, vendors, and suppliers during the bankruptcy proceedings. Biora plans to request court approval for an expedited competitive bidding process for its assets, with the lenders acting as a stalking horse bidder. CEO Adi Mohanty expressed confidence that this approach will enable the company to focus on advancing its BioJet and NaviCap platforms. The company is committed to maintaining operational continuity and fulfilling its financial obligations during this restructuring process.
Potential Positives
- Secures up to $10.25 million in debtor-in-possession financing to support ongoing business operations during the chapter 11 process.
- The structured sale process aims to strengthen the balance sheet and facilitate continued product development of innovative therapeutic platforms.
- Commitment to pay vendors, suppliers, and employees in full under normal terms, demonstrating a focus on maintaining critical business relationships.
- The expedited timeline for the sale process seeks to minimize disruption to operations and promote a swift emergence from chapter 11, positioning the company for future growth.
Potential Negatives
- Company is undergoing a Chapter 11 bankruptcy process, which is typically associated with financial distress and can negatively impact its reputation.
- Securing financing from prepetition creditors suggests reliance on existing debts, potentially indicating a lack of broader financial support or confidence from other investors.
- There is uncertainty about the company’s future ability to operate effectively and meet obligations, as stated in the forward-looking section of the release.
FAQ
What is Biora Therapeutics planning with the chapter 11 filing?
Biora Therapeutics aims to strengthen its balance sheet and continue product development through a chapter 11 sale process.
How much financing has Biora secured for its operations?
Biora has secured up to $10.25 million in financing from prepetition creditors to support ongoing business operations.
What are the BioJet and NaviCap platforms?
The BioJet platform focuses on oral delivery of large molecules, while NaviCap targets colon treatment for inflammatory bowel disease (IBD).
Will Biora continue operations during the chapter 11 process?
Yes, Biora expects to operate as usual and will continue paying wages, salaries, and benefits to employees uninterrupted.
Where can I find more information about Biora's court process?
Additional information regarding Biora's court-supervised process can be found at cases.ra.kroll.com/biora.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
Sale process will help enable next stage of product development
Secures up to $10.25 million in new financing to support ongoing business operations
SAN DIEGO, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Biora Therapeutics, Inc. (“Biora” or the “Company”), a biotech company developing smart pill-based therapeutic platforms, today announced it has reached an agreement with certain of its prepetition creditors (the “Lenders”) to provide financing to support a chapter 11 sale process, which will ultimately lead to a strengthened balance sheet and help enable it to launch its next stage of product development. To effectuate the transaction, the Company has filed a voluntary petition under chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.
Throughout this process, Biora expects to operate its business as usual and in the ordinary course as the Lenders have agreed to provide the Company with a debtor in possession financing facility of up to $10.25 million, subject to Court approval. This funding is expected to allow Biora to meet its obligations arising during the chapter 11 case to vendors, suppliers, employees and other stakeholders as it pursues a court-supervised sale process.
Biora intends to file a motion requesting approval of a marketing and sale process (the “Bid Procedures Motion”). The sales process is expected to occur on an expedited timeline which will help minimize any potential adverse impact on the Company’s operations, vendors, and employees and allow it to quickly emerge from the sale in a position to continue the clinical development of its products. The Bid Procedures Motion will facilitate a competitive bidding process under section 363 of the Bankruptcy Code, designed to achieve the highest or otherwise best value for Biora and its stakeholders. The Lenders have agreed to serve as a stalking horse bidder for the Company’s assets.
“This path will help allow us to focus on the BioJet and NaviCap platforms which we believe continue to make tremendous progress. We are happy that the Lenders recognize this progress and have showed their confidence by financing the process as we continue the development of our programs,” said Adi Mohanty, Chief Executive Officer of Biora Therapeutics.
The Company has filed customary motions with the court to authorize ongoing operations, including the timely, uninterrupted payment of employee wages, salaries, and benefits. Biora intends to pay vendors and suppliers in full under normal terms for goods and services provided during the chapter 11 case. The Company expects these motions to be approved in the coming days.
Court filings and other information regarding Biora’s court-supervised process is available at
cases.ra.kroll.com/biora
. The Company has set up an information line to answer questions about this announcement, which can be reached by calling 1-877-329-1873 (toll-free U.S. calls) or 1-646-817-8535 (international).
McDermott Will & Emery is Biora’s legal counsel, MTS Health Partners is its investment banker, and Evora Partners, LLC is its restructuring advisor.
About Biora Therapeutics
Biora Therapeutics is a clinical-stage biotech company developing two smart pill-based therapeutics platforms: the
NaviCap™ platform for colon-targeted treatment of IBD
, designed to improve patient outcomes through treatment at the site of disease in the gastrointestinal tract, and the
BioJet™ platform for oral delivery of large molecules
, designed to replace injection with needle-free delivery. For more information, visit
bioratherapeutics.com
.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding the Company’s business and balance sheet strength, profitability, continued product development, advancement of its strategy, ability to continue operating its business, make timely payments and meet its obligations to vendors, suppliers, employees and other stakeholders, ability to maintain its workforce, and ability to implement the restructuring pursuant to the Chapter 11 cases and plan of reorganization, including the timetable of completing such transactions, if at all. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the Company’s ability to obtain Court approval with respect to motions in the Chapter 11 cases; the effects of the Chapter 11 cases on the Company and on the interests of its constituents; the length of time the Company will operate under the Chapter 11 cases; the potential adverse effects of the Chapter 11 cases on the Company’s liquidity and results of operations and increased legal and other professional costs necessary to effect the Chapter 11 sale process; the potential risks associated with trading on the OTC Market, including liquidity constraints and limited regulatory oversight; risks related to the Company’s indebtedness that may restrict its current and future operations; and the Company’s ability to continue as a going concern. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. All forward-looking statements speak only as of the date made, and the Company disclaims any obligation to update any of these statements, even if subsequent events cause our views to change. The Company therefore cautions readers against relying on these forward-looking statements and they should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Media Contact
media@bioratherapeutics.com
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