Dendreon court gives final approval on procedures for equity trading

By Kali Hays

New York, Dec. 9 – Dendreon Corp. received final approval of procedures for trading in its equity securities designed to preserve the company’s net operating losses and other tax attributes, according to a Dec. 9 order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the procedures require substantial shareholders to provide notification of that status within 20 days of the order or within 10 days of becoming a substantial shareholder.

A substantial shareholder is defined in Dendreon’s case as a holder of 4˝% or more of the company’s stock.

A notice of any proposed share transfers that would result in a holder becoming a substantial shareholder must be provided at least 30 days before the transfer.

The company will then have 30 days to object to the proposed transfer. If there is no objection, the transfer can proceed. If Dendreon does object, the transfer cannot be made without a final court order.

Any transfers that violate the procedures will be deemed null and void.

Dendreon, a Seattle-based biotechnology company that focuses on novel therapeutics to enhance cancer treatment options, filed for bankruptcy on Nov. 10. The Chapter 11 case number is 14-12515.

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