Hopkinton Drug Firm On Shaky Ground
Alseres Pharmaceuticals Inc. says it must raise cash, be acquired, collaborate or merge with another company in order to remain in business.
The Hopkinton-based firm reported a net loss of $20.8 million on no revenue for 2008. Since the company was founded in 1992, it has lost $184 million and is currently running a stockholders' deficit of $40 million and a net working capital deficit of $4.6 million.
As of last week, the company claimed cash and cash equivalents of $187,000, enough to "meet our anticipated cash expenditures into April 2009," the company said. "We must immediately raise additional funds in order to continue operations."
The firm, which is developing treatments for Parkinson's disease, dementia and other nervous system disorders, said it is exploring debt financing, an equity offering, collaboration, merger, acquisition or any other transaction that might keep it in business.
Since 1992, the company, formerly known as Boston Life Sciences Inc., has borrowed $25 million from a group of investors lead by Robert L. Gipson, a former director of the company, senior director of New York City-based investment manager Ingalls & Snyder LLC and general partner of Ingalls & Snyder Value Partners LP. Also involved in the loans were Thomas Gipson, Arthur Koenig and Highbridge International LLC.
As part of a 2005 loan, the investors stipulated that the company would not issue shares at less than $2.50 per share. This morning, Alseres was trading at $1.
WBJ Web Partners
Most Recent
Most Recent
0 Comments