In an effort to facilitate the sale, Response filed a voluntary petition under chapter 11 of the Bankruptcy Code in the Delaware Bankruptcy Court to seek approval to implement sale and bidding procedures. In addition to this, SWK Funding agreed to provide Response up to $3 million in financing to help fund operations.
As part of the sale process, the Cancer Genetics stalking horse bid is subject to higher or better offers as other interested parties will have an opportunity to submit competing bids. The final highest or best bid will then require court approval. The company anticipates the sale will be completed within 60 days.
For some background: Response Genetics is a CLIA-certified clinical laboratory focused on the development and sale of molecular diagnostic testing services for cancer. Cancer Genetics is an emerging leader in DNA-based cancer diagnostics, servicing some of the most prestigious medical institutions in the world.
Thomas Bologna, CEO of Response Genetics, said:
We took this action today with the goal of securing Response Genetics’ future. The company has implemented various strategic initiatives and considered numerous options. We believe that this process is the best and most efficient course of action to serve our customers.
Shares of Cancer Genetics were up 2.2% at $8.82 on Monday afternoon. The stock has a consensus analyst price target of $14.58 and a 52-week trading range of $4.83 to $12.75.
Response shares were down 82%, at $0.02 on a 52-week trading range of $0.01 to $0.85.
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