--- title: "Sangamo files Chapter 11 with DIP financing from Northridge ATM" url: "https://aibio.space/news/sangamo-files-chapter-11-dip-financing-northridge-atm/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2026-06-23" section: "Debt Financing" tickers: "OTC:SGMOQ" source: "https://www.sec.gov/Archives/edgar/data/1001233/000119312526278582/d161847d8k.htm" summary: "Sangamo filed for Chapter 11 in Delaware on June 23, 2026 and seeks court approval of DIP financing from Northridge ATM, LLC. Eli Lilly and Astellas have s" --- By the aibio.space news desk. Sources - [Sangamo Therapeutics, Inc. 8-K (2026-06-23)](https://www.sec.gov/Archives/edgar/data/1001233/000119312526278582/d161847d8k.htm) [SGMOQ](https://aibio.space/companies/sangamo-therapeutics/) 2026-06-23 # Sangamo files Chapter 11 with DIP financing from Northridge ATM Tickers [SGMOQ](https://aibio.space/companies/sangamo-therapeutics/) Sangamo filed for Chapter 11 in Delaware on June 23, 2026 and seeks court approval of DIP financing from Northridge ATM, LLC. Eli Lilly and Astellas have signed stalking horse bids for its assets. ## Key facts - **Company**: Sangamo Therapeutics, Inc. (OTC: SGMOQ) - **News type**: Debt Financing - **Primary source**: [Sangamo Therapeutics, Inc. 8-K (2026-06-23)](https://www.sec.gov/Archives/edgar/data/1001233/000119312526278582/d161847d8k.htm) *A conference room set for a meeting. CC0, via rawpixel. The picture shows the field, not the companies named.* ## The filing, the lender and the DIP terms Sangamo Therapeutics, Inc. ([SGMOQ](https://aibio.space/companies/sangamo-therapeutics/)) filed a voluntary Chapter 11 petition on June 23, 2026 in the U.S. Bankruptcy Court for the District of Delaware, Case No. 26-10989. It will operate as a debtor-in-possession and filed a motion for approval of debtor-in-possession financing, called the DIP Facility. The DIP lender is Northridge ATM, LLC. It agreed to provide up to $30 million in aggregate principal amount. Borrowings would be senior secured obligations, secured by a first priority lien on substantially all assets of the company and its subsidiaries and a superpriority claim. The facility is expected to require a 13-week budget. Court approval has not been obtained. The company is seeking interim approval of an initial draw of up to $10.5 million, then final approval of the full facility. Proceeds may fund post-petition working capital and the costs of the case. Everything owed under the DIP Facility comes due in cash on the earliest of several events, including December 30, 2026, the effective date of any Chapter 11 plan, and a sale of substantially all assets. Dismissal or conversion to Chapter 7 also triggers repayment, as does the 35th day after the petition date unless a final DIP order has been entered by then. The 8-K names no placement agent or other advisor for the DIP Facility. ## Two buyers, two price tags The company says its objective is to maximize value, which may be achieved through a sale of all or substantially all assets to the highest bidder or bidders. On June 22, 2026 it signed a stalking horse asset purchase agreement with Merope Acquisition Sub, LLC, a subsidiary of Eli Lilly and Company. Lilly would acquire the company's technology platforms, including its AAV capsid platform with the STAC-BBB capsid, its zinc finger platform, its Modular Integrase genome editing platform and the prion disease program ST-506. The price is $50 million plus assumed liabilities. Closing depends on a court order and on a condition related to the treatment of outbound licensing agreements. The same day, Gene Therapies Inc., a subsidiary of Astellas Pharma Inc., agreed to a second stalking horse deal for the assets tied mainly to isaralgagene civaparvovec, the company's Fabry disease candidate. Its price is $25 million at closing plus up to $25 million on milestones. Both offers are floor bids that a higher bid can displace, and the 8-K does not say which bidder, if either, will prevail. ## Layoffs and what the annual report flagged On June 18, 2026 the board approved a restructuring that eliminates approximately 51 roles in the United States, or approximately 40% of the workforce. About 77 employees remain to advance the programs covered by the two purchase agreements. The annual report, filed in March 2026, names the adequacy of data from the Phase 1/2 STAAR study to support accelerated approval of isaralgagene civaparvovec as an uncertainty, and gives no results from the study. It also lists the sufficiency of cash and the ability to raise substantial additional financing as going-concern risks, and says that at any time the company "may elect or may be required to cease operations entirely, liquidate all or a portion of our assets, and/or seek protection under the U.S. Bankruptcy Code in the very near term." ## Nasdaq, losses and cash Nasdaq notified the company on April 28, 2026 of its determination to delist the stock for failing the minimum bid price requirement. The company requested, and completed, a hearing before a Nasdaq Hearings Panel to appeal. The request stayed the delisting but not the trading suspension, so the stock moved to the OTCQB Venture Market on May 5, 2026. The net loss was $122.9 million for 2025, up from $97.9 million for 2024. Research and development expense was $112.7 million, against $111.5 million. Cash used in operations rose to $97.2 million from $67.1 million. Cash and cash equivalents were $41.9 million at the end of 2024 and $20.9 million at the end of 2025, according to a quarterly report filed May 14, 2026. The company held $27.6 million at March 31, 2026. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story SGMOQ Sangamo Therapeutics, Inc. 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Cite as: aibio.space, "Sangamo files Chapter 11 with DIP financing from Northridge ATM", 2026-06-23, https://aibio.space/news/sangamo-files-chapter-11-dip-financing-northridge-atm/