IRVINE, Calif., March 3, 2015 /PRNewswire/ -- AtheroNova Inc.
(OTCQB: AHRO) today announced that the Company and its subsidiary,
AtheroNova Operations, Inc., filed voluntary petitions under
Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court, Central District of California, Santa
Ana division (the "Bankruptcy Court") on March 2, 2015. The Company's Chapter 11 cases are
expected to be jointly administered.
The Company will evaluate all options, including a Bankruptcy
Court supervised asset sale process, for all or substantially all
of its assets to a party who could potentially be interested in
continuing the Company's clinical programs.
During the bankruptcy process, the Company will continue to
operate in the ordinary course, including continuing the evaluation
of its recently concluded Phase 1b clinical trial in Russia. In addition, the Company intends to
request Bankruptcy Court approval of a series of customary
motions. Bankruptcy Court documents and additional
information are available as indicated below.
Levene, Neale, Bender, Yoo & Brill L.L.P. is serving as the
Company's bankruptcy counsel, and Sherwood Partners, LLC is serving
as the Company's financial advisor and sales agent in this
process.
Cautionary Statements
The Company's stockholders are cautioned that trading in the
Company's securities during the pendency of the bankruptcy cases is
highly speculative and involves substantial risks. Trading prices
for the Company's common stock may bear little or no relationship
to the actual recovery, if any, by stockholders in the Company's
bankruptcy cases. Accordingly, the Company urges extreme caution
with respect to existing and future investments in its common
shares.
A Chapter 11 plan of reorganization or liquidation or an asset
sale under Section 363(f) of the Bankruptcy Code in the bankruptcy
cases may result in holders of the Company's common stock receiving
no distribution on account of their interests. If certain
requirements of the Bankruptcy Code are met, a reorganization plan
can be confirmed notwithstanding its rejection by the Company's
equity security holders and notwithstanding the fact that such
equity security holders do not receive or retain any property or
other value in respect of their equity interests.
In bankruptcy cases, the Companies are required periodically to
file various documents with, and provide certain information to,
the Bankruptcy Court, including statements of financial affairs,
schedules of assets and liabilities, monthly operating reports, and
other financial information. Such materials will be prepared and
filed with the Bankruptcy Court. While they would be expected
to accurately provide then-current information as required under
federal bankruptcy law, such materials will contain information
that may be unconsolidated and will generally be unaudited and
prepared in a format different from that used in the Company's
consolidated financial statements filed with the Securities and
Exchange Commission under the federal securities laws. Accordingly,
the Company believes that the substance and format of such
materials do not allow meaningful comparison with its
publicly-disclosed consolidated financial statements. Moreover, the
materials filed with the Bankruptcy Court are not prepared for the
purpose of providing a basis for an investment decision relating to
the Company's securities or for comparison with other financial
information filed with the Securities and Exchange Commission.
Most of the Company's filings with the Bankruptcy Court are and
will be available to the public at the offices of the Clerk of the
Bankruptcy Court or on Public Access to Court Electronic Records
(PACER)'s website (https://www.pacer.gov/). The Company undertakes
no obligation to make any further public announcement or issue any
update with respect to the documents filed with the Bankruptcy
Court or any matters referred to therein.
About AtheroNova
AtheroNova Inc. is a clinical-stage biopharmaceutical company
focused on the discovery, development, commercialization and
licensing of novel prescription compounds and products. For more
information, please visit www.AtheroNova.com.
Forward-Looking Statements
This news release includes "forward-looking statements". These
statements are based upon the current beliefs and expectations of
AtheroNova's management and are subject to significant risks and
uncertainties. If underlying assumptions prove inaccurate or risks
or uncertainties materialize, actual results may differ materially
from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general
industry conditions and competition; significant fluctuations in
expenses associated with clinical trials, failure to secure
additional financing, the inability to complete regulatory filings
with the FDA, general economic factors, including interest rate and
currency exchange rate fluctuations; the impact of pharmaceutical
industry regulation and health care legislation in the United States and internationally; global
trends toward health care cost containment; technological advances,
new products and patents attained by competitors; challenges
inherent in new product development, including obtaining regulatory
approval; AtheroNova's ability to accurately predict future market
conditions; manufacturing difficulties or delays; financial
instability of international economies and sovereign risk;
dependence on the effectiveness of AtheroNova's patents and other
protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory
actions. Examples of forward statements included in this news
release included statements regarding the resolution of the
Company's bankruptcy cases, the Company's operations during the
pendency of the bankruptcy cases and motions the Company intends to
file in connection with the bankruptcy cases.
The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additional factors that could cause
results to differ materially from those described in the
forward-looking statements can be found in the Company's 2013
Annual Report on Form 10-K and the Company's other filings with the
Securities and Exchange Commission (SEC) available at the SEC's
Internet site (www.sec.gov).
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visit:http://www.prnewswire.com/news-releases/atheronova-and-its-subsidiary-file-for-chapter-11-bankruptcy-protection-300044381.html
SOURCE AtheroNova Inc.