MiRagen, facing capital problems, plans funding raise by next summer

BOULDER — DNA therapy company miRagen Therapeutics Inc. (Nasdaq: MGEN) says it needs to raise capital by next summer or face closing down.
The Boulder pharmaceutical company posted $690,000 in revenue and a loss of 36 cents per share for the quarter, missing Wall Street consensus estimates of $1.25 million and a 30 cents per share loss, according to Seeking Alpha data.
It had an $11.23 million net loss in the period.
In its extended filings, miRagen estimated it had enough capital to keep operating through Q2 2020. Without additional fundraising, the company said it will not be able to pay its existing debts or continue clinical trials on its two treatment candidates for blood cancer and pathologic fibrosis.
The company has yet to secure U.S. Food and Drug Administration approval for any of its products and runs off of collaboration and grant revenue, along with equity and debt capital. Both of its drug candidates are currently in Phase II clinical trials, with results due for release by the end of 2019 and in the second half of 2021.
Nasdaq issued miRagen a letter earlier this month saying its stock price was below $1 per share for the previous 30 trading days, and is threatening to delist it unless its stock returns above that dollar threshold before late next April.
In an interview at the time, CEO Bill Marshall said the company will consider what it can do to raise the stock, including a possible reverse stock split to reduce its shares outstanding.
MiRagen stock fell a third of a percent in early trading Friday to 71 cents per share as of 10:30 a.m. Mountain Time.