BioXcel Therapeutics Files Chapter 11 Bankruptcy With $100M-$500M Liabilities
BTAI is trading near its 52-week low of $0.7 (2.1% above the low).
Summary
BioXcel Therapeutics filed for Chapter 11 bankruptcy protection in Delaware, listing liabilities of $100M-$500M against assets of just $10M-$50M. The filing follows a series of debt deferrals and covenant amendments with Oaktree, including a $1.25M loan at a 20% upfront fee just days ago. The company reported a Q2 adjusted loss of 49 cents per share and had been exploring strategic options since May. This bankruptcy filing confirms the going-concern risk flagged in prior filings and likely wipes out most equity value. Watch for court-approved debtor-in-possession financing and any asset sale process.
At the time of this announcement, BTAI was trading at $0.72 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $22.5M. The 52-week trading range was $0.70 to $5.19. This news item was assessed with negative market sentiment and an importance score of 10 out of 10. Source: Reuters.