Eiger BioPharmaceuticals Considers Cancellation of Shares Under Chapter 11

Eiger BioPharmaceuticals, Inc., a biopharmaceutical company, announced a significant advancement in its ongoing Chapter 11 bankruptcy proceedings. According to a recent SEC filing, the company filed a proposed joint plan of liquidation and disclosure statement with the United States Bankruptcy Court for the Northern District of Texas on Monday.

Under the proposed plan of reorganization, all equity interests in Eiger BioPharmaceuticals will be cancelled and extinguished. Shareholders will receive their pro rata share of the cash in the Existing Equity Interest Recovery Pool (NASDAQ: Existing Equity Interest Recovery Pool), as defined in the plan of reorganization. This will effectively eliminate shareholders’ existing equity interests.

The Company’s securities, which were suspended from trading on the Nasdaq Stock Market LLC on April 11, 2024 and are currently trading on the OTC Pink Market under the symbol “EIGRQ,” are considered highly speculative. The Company cautions that trading prices may not reflect the actual recovery, if any, for holders in the Chapter 11 cases, suggesting that investors could face a substantial or total loss of their investment.

A hearing to discuss approval of the disclosure statement and confirmation of the Chapter 11 plan is scheduled for July 29, 2024. The deadline for objections to the classification of the company’s claims and interests as “intact” under the Chapter 11 plan is also set for the same day.

The contents of the draft Chapter 11 Plan and Disclosure Statement are subject to change and no party should rely on them until they are finalized. The Company emphasizes that this report does not constitute an invitation to accept or reject the draft Chapter 11 Plan and Disclosure Statement, and that any solicitation will be made in accordance with the approved definitive documents and applicable law.

This news is based on information contained in a recent SEC filing by Eiger BioPharmaceuticals.

In other recent news, Eiger BioPharmaceuticals, Inc. has completed the sale of its Avexitide asset to Amylyx Pharmaceuticals, Inc., a transaction valued at $35.1 million, excluding determined treatment costs and assumed liabilities. This significant move follows Eiger’s voluntary filing for Chapter 11 bankruptcy protection.

Amylyx became the successful bidder for Avexitide’s assets in a court-supervised auction process, with the sale authorized by the United States Bankruptcy Court for the Northern District of Texas.

Amylyx Pharmaceuticals will now assume responsibility for the development and commercialization of the Avexitide asset. This transaction marks a critical milestone in Eiger’s ongoing bankruptcy proceedings, signaling a pivotal moment as the company seeks to meet its obligations to its creditors.

As Eiger enters into bankruptcy, the company has issued a warning to its security holders regarding the speculative nature and significant risk associated with trading in Eiger securities during the Chapter 11 proceedings.

Information about InvestingPro

Given Eiger BioPharmaceuticals’ recent developments, investors are closely watching the company’s financial health and stock performance. InvestingPro’s real-time data shows a market capitalization of $18.66 million, with a significant revenue growth of 41.06% in Q1 2023 compared to the previous quarter. Despite this growth, the company’s operating margin remains deeply negative at -455.12% for the last twelve months as of Q1 2023.

InvestingPro’s advice points out that Eiger BioPharmaceuticals is burning through cash quickly and has short-term obligations that exceed its liquid assets. Additionally, analysts do not expect the company to be profitable this year, consistent with the company’s current bankruptcy proceedings and the potential total loss to shareholders. These factors underscore the speculative nature of the company’s OTC stock, EIGRQ.

For investors considering the future of Eiger BioPharmaceuticals, it is worth noting that there are many other InvestingPro tips available that could provide deeper insights into the company’s financial position and stock performance. To discover these tips and make more informed investment decisions, use the promo code PRONEWS24 to benefit from up to 10% off an annual Pro subscription and an annual or biannual Pro+ subscription.

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