KaloBios OTC Shares Up 80%, Leading Martin Shkreli To Tweet About His Former Company
KaloBios Pharmaceuticals Inc (OTC: KBIOQ) shares were up more than 74 percent at $7.85 Wednesday afternoon, hitting a day's high of $9. The surge in price led its former CEO, Martin Shkreli, to chime in on his former company.
"$KBIOQ has same assets and a BETTER CEO than me but stock is below where it was when I was in," Shkreli's Tweet said. "Not suggesting an investment but interesting."
KaloBios has lined up $14 million in loans to try and get out of bankruptcy. This financing could be paid off in the form of bargain-priced stock that would water down the holdings of Shkreli.
"KaloBios is operating under chapter 11 bankruptcy protection, raising money to revive a deal Mr. Shkreli was working on at the time of his arrest," said MartketWatch. "KaloBios's new leaders have told the company's bankruptcy judge that he has no say in what is going on at the company."
The report continued, "If the financing works out, Mr. Shkreli's influence will be even more muted, KaloBios lawyer Gregory Werkheiser told Judge Laurie Selber Silverstein at a hearing Monday in the U.S. Bankruptcy Court."
Shkreli was arrested in December 2015 and charged with securities fraud relating to his time as CEO of Retrophin, a company he founded. He had become CEO of KaloBios just a month earlier.
KaloBios shares were halted late in December and were delisted from the NASDAQ exchange on January 13.
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