Bioure (BPUR) The walking dead – why do they hang on so long?
Biopure founded BPUR) filed for Chapter 11 (7/16/09).
Biopure developed pharmaceuticals, called oxygen therapeutics, that are intravenously administered to deliver oxygen to the body’s tissues.
- BPUR failed amid numerous regulatory setbacks – and should have known – then – there are no magic acts in this business!
- BPUR has now entered into an agreement with OPK Biotech LLC for the sale of all of its assets. Note, if the proposed OPK Biotech LLC transaction closes (as stated) there will be limited, if any, value for the common stockholders in the bankruptcy liquidation process – the filing lists total assets of $5.06 M and total debts of $2.72 M.
The writing has been on the wall for the past number years. In fiscal 2008 (from filings) financing activities provided $16.4 M in cash, from the sale of common stock and warrants; 10/31/08, BPUR had $1,095,000 in cash and cash equivalents. On 10/22/08, BPUR (then $0.28) had received notice from NASDAQ indicating granting of an extension to regain compliance. At 12/31/08, it had $356,000 in cash and cash equivalents – not sufficient enough to pay its current obligations.
The Bottom Line: Why have they waited so long — did they think the tooth fairy would deliver money under the pillow? On 2/17/09, BPUR announced the engagement of Newbury Piret & Co. to “advise on strategic options” well after their public accounting firm reporting contained statements re their ability to continue as a “going concern”. When companies run down the cash and the value – what’s left for the bankruptcy court – is so depreciated that – only – a fire sale is available. Note from the filing, “management will continue to manage and operate its businesses and assets during the pendency of the bankruptcy case, subject to the supervision of the bankruptcy court” – so they still get paid from the proceeds of the sale – having not managed their predicament – earlier. Where – was the board and its governance; another aspect to – heck – with the shareholders who funded their development throughout these 25 years.
