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SAN DIEGO - Viracta Therapeutics, Inc. (NASDAQ: VIRX), a precision oncology company specializing in virus-related cancers, has announced it will terminate its employees and begin winding down operations. The announcement comes as the company’s stock has fallen 94% over the past year, currently trading at $0.04 per share with a market capitalization of just $1.4 million. The company is concurrently exploring strategic alternatives for its development programs.
Craig R. Jalbert has been appointed as the new CEO, President, CFO, Treasurer, and Corporate Secretary, as well as the sole board member, to oversee the wind-down process. Jalbert, 63, is a principal at Verdolino & Lowey, P.C., an accounting firm in Foxborough, Massachusetts. With over three decades of experience in managing distressed businesses, he has held various leadership roles in companies during their wind-down phases.
The decision to cease operations and explore alternative strategies for the company’s assets comes amid undisclosed challenges that Viracta faces. InvestingPro analysis reveals the company has been quickly burning through cash, with short-term obligations exceeding liquid assets and a concerning current ratio of 0.76. The specifics of the wind-down process or the nature of any potential strategic alternatives have not been disclosed. The company’s forward-looking statements indicate plans to wind down operations and assess strategic options but also highlight that actual results may vary based on a variety of risks and uncertainties. For deeper insights into Viracta’s financial situation, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
Viracta’s future filings with the SEC will provide further details on the wind-down and any strategic alternatives pursued. The company has made it clear that it does not intend to update the forward-looking statements unless required by law or regulation.
This development marks a significant shift for Viracta Therapeutics and its stakeholders. The information is based on a press release statement from the company.
In other recent news, Viracta Therapeutics, Inc. is set to be delisted from the Nasdaq Stock Market LLC due to non-compliance with the exchange’s listing rules. The company has also entered into a forbearance agreement with its lenders, including Oxford Finance LLC and Silicon Valley Bank, to avoid immediate default. The agreement entails Viracta applying company cash toward its outstanding debt and granting a security interest in its intellectual property.
Viracta received a Nasdaq notice indicating non-compliance with the exchange’s audit committee requirements, following the resignation of Dr. Barry J. Simon from the company’s board and audit committee. The company now has a grace period to address this issue.
The pharmaceutical company also faces the risk of delisting due to not meeting the minimum bid price and stockholders’ equity requirements. However, Viracta plans to appeal the delisting decision and request a hearing before the Nasdaq Listing Qualifications Panel. These developments are based on recent press release statements and SEC filings by Viracta Therapeutics.
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