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NEW YORK/VIENNA - HOOKIPA Pharma Inc. (NASDAQ:HOOK), a micro-cap biotech company with a market value of $14.6 million that has seen its stock decline 82% over the past year, announced Friday its intention to voluntarily delist from the Nasdaq Capital Market and deregister its common stock under the Securities Exchange Act of 1934. According to InvestingPro data, the company maintains a solid liquidity position with a current ratio of 3.61, though it has been rapidly burning through cash.
The clinical-stage biopharmaceutical company’s decision follows a May 21 asset purchase agreement with Gilead Sciences, Inc., under which Gilead will acquire HOOKIPA’s assets related to its HB-400 hepatitis B virus program and certain assets from its HB-500 HIV program. This move comes as InvestingPro analysis reveals the company’s challenging financial position, with revenue declining by 82.5% and receiving a "WEAK" overall financial health score. Get access to 12 additional ProTips and comprehensive analysis with an InvestingPro subscription.
HOOKIPA plans to file a Form 25 with the SEC on or about July 29, with the delisting expected to become effective around August 8. The company anticipates filing a Form 15 to deregister its common stock and suspend reporting obligations following the delisting.
The company is holding a special stockholder meeting on July 29 to seek approval for both the asset sale and the dissolution and liquidation of the company. If approved, HOOKIPA intends to file a Certificate of Dissolution with Delaware’s Secretary of State after closing the asset sale.
In its announcement, HOOKIPA cited the economic burden of maintaining SEC reporting requirements during liquidation as a key factor in the decision to delist, noting that compliance expenses would reduce assets available for distribution to stockholders.
Following delisting, any trading of HOOKIPA’s stock would occur only in privately negotiated sales or potentially on over-the-counter markets, though the company noted there is no guarantee brokers will make a market for the stock.
The deregistration of HOOKIPA’s common stock is expected to become effective 90 days after filing the Form 15 with the SEC, according to the company’s press release statement. For detailed insights into similar biotech companies and their financial health, access the comprehensive Pro Research Reports available for over 1,400 US stocks on InvestingPro.
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