Notable Labs, Ltd., a pharmaceutical company based in Foster City, California, has filed for bankruptcy, according to a recent 8-K filing with the Securities and Exchange Commission. The filing, made on Sunday, October 13, 2024, indicates that Notable Labs and its subsidiaries sought voluntary relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
As a result of the bankruptcy proceedings, the company's board of directors, including Tuomo Pätsi, Thomas I. H. Dubin, Peter Feinberg, Michele Galen, Thomas Graney, and Michael Rice, resigned effective immediately following the filing.
The company stated that the resignations were not due to any disagreements over operations, policies, or practices but were a direct consequence of the bankruptcy filing, which effectively dissolved the board's authority.
In addition to the board's departure, Notable Labs terminated the employment of several top executives. Scott A. McPherson, the Chief Financial Officer, and Joseph Wagner, the Chief Scientific Officer, were both terminated on Monday, October 8, 2024.
Kaile A. Zagger, who held the roles of Chief Restructuring Officer and Interim Chief Executive Officer, was also terminated from these positions on the same date and transitioned to an advisory role to the company.
The company, formerly known as Vascular Biogenics (NASDAQ:NTBL) Ltd., trades on The Nasdaq Capital Market under the ticker symbol NTBL. Notable Labs' business address is listed at 320 Hatch Drive, Foster City, California, with the same location as its mailing address.
This development marks a significant turn for the pharmaceutical preparations company, which is now set to undergo liquidation of its assets under the supervision of a Chapter 7 trustee appointed by the Bankruptcy Court. The trustee will manage the bankruptcy estates of Notable Labs and its subsidiaries, with the liquidation process adhering to the procedures and priorities established by the Bankruptcy Code.
The information reported is based on the company's SEC filing and reflects the latest available data on the company's financial and corporate status.
In other recent news, Notable Labs has seen a series of significant changes. The company underwent a strategic shift, resulting in a considerable reduction in its workforce and the suspension of a key Phase 2 clinical study, as approved by the Board of Directors. Notable Labs has also seen leadership changes, with the appointment of Kaile A. Zagger as Interim Chief Executive Officer and Chief Restructuring Officer.
JMP Securities adjusted its rating for Notable Labs stock from Market Outperform to Market Perform, due to uncertainties surrounding the future of its leading asset, volasertib. The firm noted that the stock is fairly valued at the present price, based on a discounted cash flow model.
Notable Labs reported a cash balance of $4.1 million at the end of the second quarter, with an estimated current balance of approximately $2 million.
On the clinical front, Notable Labs received FDA clearance to proceed with a Phase 2 clinical trial of volasertib for patients with relapsed refractory acute myeloid leukemia. The company plans to selectively enroll patients predicted to respond to treatment, using its Predictive Precision Medicines Platform.
Initial data from the dose optimization phase is expected by the fourth quarter of 2024, with efficacy results expected in the first half of 2025. These are recent developments that investors should note.
InvestingPro Insights
The bankruptcy filing of Notable Labs, Ltd. comes amid a series of financial challenges evident in recent InvestingPro data. The company's market capitalization has dwindled to just $3.86 million, reflecting severe investor skepticism. This aligns with an InvestingPro Tip indicating that the stock has "fared poorly over the last month," with a one-month price total return of -16.32%.
The company's financial distress is further underscored by its negative operating income of -$15.37 million for the last twelve months as of Q2 2024, and an alarming operating income margin of -4910.54%. An InvestingPro Tip notes that Notable Labs has been "quickly burning through cash," which likely contributed to the decision to file for bankruptcy.
Despite these challenges, it's worth noting that according to another InvestingPro Tip, the company "holds more cash than debt on its balance sheet." This could potentially provide some value for creditors during the liquidation process.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Notable Labs, providing a deeper understanding of the company's financial position leading up to its bankruptcy filing.
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