3D signatures (3DS) is a personalized medicine firm which has laid off its contractors and employees. The company lacked funding and due to that, it is going to declare bankruptcy soon.
Based in Toronto, the 3D signatures company is developing the prognostic and diagnostic tests which image and tag the telomeres of chromosomes and thus analyzes their spatial patterns. These tests are based on a proprietary platform. 3D signatures have recently agreed to collaborate with MDxHealth for evaluating the investigational prostate cancer test.
The spokesperson from the company has told that the company lacked the funding and thus, it is not possible for the company to continue its operations. Due to the lack of financing, the company is now intending to file for the bankruptcy under the Bankruptcy and Insolvency act of Canada. The board of the firm has not resigned and will cooperate all along with the bankruptcy process according to the spokesperson of 3DS company.
According to the statistics of the 3D signatures company, till March 31, the total cash of the company was C$ 618,411 that equal to 477.078 USD. The firm had also noticed that the working capital of the company at the end of march was C$ 390,689. However, this capital is quite minimal as compared to that of last year. Last year, at the end of June, the working capital of 3DS was C$ 1.3 million whereas it was C$ 3.2 million at the end of March. For the third quarter, the net loss for the company was reported to be C$ 920,758 which amounts to the loss of C$ 0.01 per share.
The company had sold 2 million shares of the common stock in October 2017 to ScreenCell, the French biotechnology company for C$ 500,000. Moreover, the company filed to offer C$ 5 million in the common stock via a private placement about a year ago.
The company is in talks with their bankruptcy attorney and believes that it is time that company seizes its operations, lays off its employees and whether or not the company will be back in operation, it depends on whether or not they are able to secure some funding later on.
Now, the foreclosure attorney for the company is busy in preparing all the paperwork and determining the category of bankruptcy which the company will file for. What happens after the company goes bankrupt is a big question mark for the company, its employees, board and the investors. Now, the company has not yet shown any signs of resuming their operations. However, when they do so, they will be left with a lot lesser debt and will be able to continue their operations in a better way. The company might be able to secure more funding once it comes back in service.
Till now, the company has seized its operations and has come to a halt after applying for bankruptcy. The bankruptcy attorney of the company is doing his job and soon, there will be a decision about the financial future of the company.
For more information on bankruptcy filings, contact us at the Segaul Law Firm today.