Additionally, CARGO announced they are going to evaluate strategic options and are commencing a 50% reduction in force. The announcement is not a full waving the white flag, they do have a Phase 1 ready asset in CRG-023 that just received an IND application approval from the FDA earlier this month. CARGO currently plans to go ahead with mid-year launch of a Phase 1 study, but my guess is those plans could change by then depending on what happens with the strategic review. CARGO was a late 2023 IPO and thus has a nice chunk of cash remaining on their balance sheet that could be attractive to a reverse merger partner and provides some margin of safety at these prices if the process drags out.
Above is my typical back of the envelope math on a potential liquidation value for CRGX. The shareholder base here seems pretty vanilla, there are no cornerstone biotech investors owning more than 10%, the board is staggered and management owns very little stock. It might need an activist or other push to get things moving here, but I like the discount to a large cash balance and added it to my broken biotech basket.
Disclosure: I own shares of CRGX