
Following Failed Strategic Alternative Process; Biocept, Inc. Files for Chapter 7 Bankruptcy, Announces CEO/Board Resignation
Biocept, Inc., a Delaware corporation, has taken the decision to file for bankruptcy under Chapter 7 of Title 11 of the United States Code. This decision was officially made on October 13, 2023, when the company submitted a voluntary petition for relief. The case will be administered by the United States Bankruptcy Court for the District of Delaware. The proceeding, styled as “In Re: Biocept, Inc.,” is the latest step in the company’s strategic assessment of its financial position and the future of its operations. Chapter 7 bankruptcy is a process where a Chapter 7 trustee will be appointed by the Bankruptcy Court to manage and oversee the liquidation of the company’s assets, as well as the distribution of funds to satisfy any claims made by creditors.
Biocept predominantly offered liquid biopsy tests for tracking cancer biomarkers from cerebrospinal fluid samples with its leading product, CNSide™. In January the company had announced a strategic alternative process and restructuring plan, and the company completed a highly dilutive equity offering in the spring for $5 million. However, the company ended last quarter with only $6.6 million in cash on the balance sheet.
One of the immediate results of this bankruptcy filing is the departure of several key members of the company’s leadership team. Antonino Morales, Marsha A. Chandler, Bruce E. Gerhardt, Quyen Dao-Haddock, Ivor Royston, and Linda Rubinstein, all members of the company’s Board of Directors, resigned from their positions effective immediately on October 13, 2023, just prior to the bankruptcy petition. It’s essential to note that their resignations are not linked to any disagreements with the company’s operational policies, practices, or decisions. Instead, they are a direct consequence of the bankruptcy filing, which effectively nullifies the authority of the Board of Directors. Furthermore, in addition to his departure from the Board of Directors, Mr. Antonino Morales, who served as the President and Chief Executive Officer of Biocept, Inc., tendered his resignation from these roles, effective October 13, 2023.