Reason #2: Potential Acquisition
Sienna Biopharmaceuticals is trading at tremendous lows at the moment. While investors that got in on the stock a year or two ago aren’t likely to recoup their losses, the truth of the matter is that an acquisition would be an accretive move.
Through the bankruptcy proceedings, SNNA will be looking for potential suitors that would be interested in taking the company over or purchasing its assets.
Although there can be no assurance that an acquisition will happen, the bankruptcy opens the door to a low-cost asset purchase for a potential suitor while creating an opportunity for SNNA to try and hammer out a deal that would return value for shareholders.