Biostage misses 3Q filing deadline due to financial woes
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Biostage CEO Jim McGorry (left) and Chief Medical Officer Saverio La Francesca. The company was quickly running out of money, necessitating layoffs and a late 3Q filing.
Hollistion biotech manufacturer Biostage has notified the U.S. Securities and Exchange Commission its third-quarter report will be late.
The notification comes just a month after the company laid off 17 of its 24 employees after it was delisted from NASDAQ. That represented a 71-percent reduction of its workforce.
That reduction was made to conserve the company’s remaining cash on hand, which is exceeded by its financial obligations, Biostage said in a filing Tuesday.
Biostage said it is exploring financing and other strategic alternatives.
“The company has diligently pursued appropriate reporting and disclosures with respect to its Form 10-Q filing, but in light of these recent events, it will be unable to complete the necessary analysis and disclosures to timely file its Form 10-Q for the quarter ended September 30, 2017,” the company said in the filing.
The company attributed its NASDAQ delisting and financial woes to an agreed-upon $3-million investment with Dallas investment firm First Pecos LLC that fell through, with both companies alleging a breach of obligations against one another.
The company’s stock closed Tuesday trading a tick under $0.08 a share on the OTCQB exchange. That’s higher than its Oct. 18 low of $0.067. In August, however, stock in the company was trading for $0.60 a share.
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