HOUSTON, TX – Kiromic Biopharma, Inc. (OTCQB:KRBP), a company specializing in biological products, filed for Chapter 7 bankruptcy on Thursday, according to a recent 8-K filing with the Securities and Exchange Commission. The filing was made in the United States Bankruptcy Court for the District of Delaware. The company’s financial health had been deteriorating, with InvestingPro data showing a concerning current ratio of 0.16 and significant cash burn rate in recent quarters.
The move to file for bankruptcy will result in the appointment of a Chapter 7 trustee by the Bankruptcy Court. The trustee is expected to oversee the liquidation of the company’s assets as per the Bankruptcy Code. Creditors will be notified of the initial hearing date and will receive a Notice of Bankruptcy Case Filing.
In conjunction with the bankruptcy filing, the entire Board of Directors of Kiromic Biopharma tendered their resignations. Pietro Bersani, Michael Nagel, Mike Catlin, and Pamela Misajon stepped down from their positions effective immediately following the bankruptcy announcement. The company clarified that the resignations were not due to any disagreements with the company’s operations, policies, or practices but were a direct consequence of the bankruptcy filing which effectively dissolves the board’s governance role.
Additionally, the company announced the termination of several top executives. Brian Hungerford, the Chief Financial Officer, Leonardo Mirandola, the Chief Operating Officer, and Scott Dahlbeck, the Chief of Staff, were all relieved of their duties effective on the date of the bankruptcy filing.
This development marks a significant shift for Kiromic Biopharma, which is incorporated in Delaware and has its principal executive offices in Houston, Texas. The company, which was previously known as Kiromic, Inc. until a name change in October 2019, has now entered into a process that could lead to the sale of its assets under the guidance of the bankruptcy trustee. The company’s market capitalization had shrunk to just $1.49 million, with its stock price falling over 65% in the past year. InvestingPro subscribers have access to 12 additional warning signals that could have helped identify these risks earlier.
The information in this article is based on a press release statement from Kiromic Biopharma, Inc.
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