
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: September 14, 2015
Partner
201-896-7095 jglucksman@sh-law.comAccording to a Nasdaq report, the company has entered into an agreement to sell off all its assets to industry rival, Cancer Genetics Inc.
In bankruptcy filings, the company claimed that it had an accumulated deficit of $83 million. The cancer research giant also reported $15.7 million in total debts with only $10.8 million in total assets, as of March 31.
The company blamed its under-performance due to a 3 percent decline in revenues in Q1 2015, with a net loss of roughly $4 million. As a result, the firm received a delisting notice from Nasdaq after its shares dropped below the $1 minimum bid price listing requirement, according to a GenomeWeb report. Nasdaq also informed the company that its shares were delisted after it did not meet another requirement – a minimum of $2.5 million in stockholder equity.
According to a statement released by company officials, Response Genetics needed a significant influx of new capital investment to fulfill its working capital and liquidity requirements.
Response Genetics has indicated that it filed a Chapter 11 to facilitate its asset sale to Cancer Genetics. The company expects the auction sale to be completed within 60 days. As part of the sale process being conducted under Section 363 of the U.S. Bankruptcy Code, Cancer Genetics will be the stalking horse bidder, with other prospective buyers required to submit competing bids for Response Genetics’ assets. In the auction, Cancer Genetics will submit a $14 million bid with a 50-50 split of $7 million in cash and $7 million in common stock. Upon the sale, all shares of Cancer Genetics’ stock will be issued directly to Response Genetics’ secured lenders. The sale agreement also calls for an additional $3 million in financing from SWK Funding for the current business.
Throughout the reorganization process, the company hopes to maintain operations. However, it is seeking court approval to maintain its current business operations, employee benefits and payroll programs.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!