Los Angeles-based Quantason, which was working to develop an advanced ultrasound to screen for breast cancer, filed for Chapter 11 bankruptcy protection with an eye on finding a buyer.
The petition, reported by The Wall Street Journal, was registered Wednesday in U.S. Bankruptcy Court in Wilmington, DE, and cited assets and debts each between $1 million and $10 million. In the filing, the company proposed that potential buyers submit bids by June 2 ahead of a June 9 auction.
Founded in 2009, Quantason focused on technology to detect breast cancer by enhancing existing ultrasound 2D and 3D imaging for better detection sensitivity that would allow physicians and medical technicians to spot high-risk lesions earlier. Called microcalcifications, the lesions can be strong predictors of the presence of breast cancer.
Two rounds of funding, including a Series B infusion of $3.2 million in 2012, kept the company going. However, Quantason had yet to gain FDA approval for sale of its products, causing its operating losses to mount. An attempt to raise $10 million early last year failed when existing backers were unable to agree on an offering, the WSJ reported. When a mediation session in February broke down, the company said it had no other option but to file for bankruptcy.
-read the WSJ story (sub. req.)