Shares of biopharmaceutical company Impel Pharmaceuticals (NASDAQ:IMPL) are down nearly 24% at the time of writing, after IMPL disclosed that it will not be able to file its quarterly report for the quarter ended June 30, 2023, on time. Investors are worried about the company’s ability to remain a going concern.
Impel had previously highlighted the need to raise additional funds to avoid a default under its senior credit agreement with Oaktree. Impel has not been able to secure the necessary financing and consequently, is in breach of its debt covenant.
The company is now looking to restructure the credit agreement with Oaktree and is also in talks with investors for a $20 million bridge financing. If the talks fail to bear results, the company expects to look at strategic alternatives including a sale of assets or a Chapter 11 bankruptcy filing.
Meanwhile, Impel has posted preliminary numbers for the quarter with a net product revenue expectation of $6.6 million. It had a cash balance of $15.2 million at the end of the quarter.
Today’s price erosion comes on top of a steep 86.4% decline in Impel shares over the past year. Short interest in the stock is currently hovering at 6.8%.
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