Foxo Technologies, a Minneapolis-based biotech startup, is facing the prospect of bankruptcy if it cannot quickly secure new financing.
Minneapolis-based Foxo Technologies warns of possible bankruptcy, lays off employees
The biotech company needs new financing by mid-August and is seeking strategic alternatives, federal filings said.
July 24, 2023 at 5:47PM
Without the financing, "it will be unable to fund its operations," the company said in a Friday filing with the U.S. Securities and Exchange Commission.
Besides bankruptcy, the company, which went public in September 2022, will look at dissolving or liquidating assets if necessary, the filing said.
Foxo is reducing staff from 22 to 15 employees to cut operating expenses, the filing said.
Company officials could not be reached for comment.
Foxo developed a saliva test that could identify biomarkers to measure longevity. The concept was to market the data to life insurance companies.
Foxo reported in May that first quarter revenue was $13,000, down from $40,000 in the same quarter the year before. Its net loss was $7.6 million, compared with a net loss of $12.3 million.
Foxo went public last September in a merger with a Texas-based special purpose acquisition company.
On its first day of trading the company's stock opened at $9.15 a share. It closed Friday at 15 cents a share and on Monday at 14 cents.
Two months after going public, Foxo ousted then CEO Jon Sabes and his brother, Steven Sabes, who was chief operating officer.
In March, Foxo disclosed it was under investigation by the SEC, which was seeking documents related to the Sabes' exit from the company.
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