A month after being delisted from the Nasdaq Capital Market, diagnostic test maker Response Genetics Inc. announced Monday it declared Chapter 11 bankruptcy and would sell its assets to cancer diagnostics company Cancer Genetics Inc. for $14 million.
The company, based in East Los Angeles, saw its shares lose almost all their value Monday after the announcement. The stock, which trades over-the-counter, fell 78.6 percent to close at 3 cents a share.
Rutherford, N.J.-based Cancer Genetics will acquire Response’s assets and operations for an even split of cash and stock. The two companies expect that Response’s day-to-day operations will continue uninterrupted during the process.
Cancer Genetics’ “stalking horse” bid for the company is subject to higher or better offers, and other interested parties will have an opportunity to submit competing bids. The best bid will then be subject to court approval.
Barring a competing bid, the two firms expect the sale to be completed within 60 days.
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