The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Humanigen, Inc. on January 25, 2024. The Court approved the asset purchase agreement between the debtor and Taran Therapeutics Inc., the stalking horse bidder, for the sale of substantially all its assets for a purchase price of $2 million in cash along with a credit bid and the assumption of Assumed Liabilities pursuant to the asset purchase agreement. To qualify as a qualified bidder, interested parties should submit their bids by February 12, 2024, along with good-faith deposit in the amount of 10% of the bid price.

The initial minimum overbid should be at least $0.3 million more than the initial purchase price. The debtor has scheduled an auction on February 13, 2024 At the auction, the subsequent bids would be in increments of $0.05 million. The stalking horse bidder would be entitled to a break-up fee of $0.3 million and expense reimbursement of $0.1 million in case of termination of the asset purchase agreement.

The sale hearing is scheduled for February 14, 2024.