Pear Therapeutics Files for Chapter 11 and Will Seek to Sell Assets Through Sales Process
April 07 2023 - 11:30AM
Business Wire
Pear Therapeutics, Inc. (Nasdaq: PEAR) (“the Company”), a
company focused on developing and commercializing software-based
medicines called prescription digital therapeutics (PDTs), today
announced that the Company and its wholly owned subsidiary, Pear
Therapeutics (US), Inc. (collectively, the “Debtors”) each
voluntarily filed for protection under chapter 11 (“Chapter 11”) of
the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the United
States Bankruptcy Court for the District of Delaware (the
“Bankruptcy Court”) and they intend to pursue a sale of the
business or assets under section 363 of the Bankruptcy Code.
Prior to the filing of the Chapter 11 cases, the Debtors
evaluated a wide range of strategic alternatives to maximize value
for all stakeholders. The Debtors also significantly reduced
operating expenses. With the protections afforded by the Bankruptcy
Code, the Debtors intend to continue their marketing efforts to
potential purchasers interested in specific assets as well as
continuing to seek a sale of the whole business. Any of those sales
would be subject to review and approval by the Bankruptcy Court and
compliance with bidding procedures to be approved by the Bankruptcy
Court.
The Company intends to continue scaled-down operations during
the Chapter 11 as it seeks to execute an expedited sale process.
Having reached a settlement prior to the filing with its lender,
Pear intends to use available cash to fund post-petition operations
and costs in the ordinary course of its business.
The Debtors intend to file various “first day” motions with the
Bankruptcy Court requesting customary relief that will enable them
to transition into Chapter 11 without material disruption to their
ordinary course operations. Such motions are typical in the Chapter
11 process and the Debtors anticipate that they will be heard in
the first few days of their Chapter 11 cases.
Pear is represented by Foley Hoag LLP as counsel, Gibbons P.C.
as co-counsel, Sonoran Capital Advisors as restructuring advisor,
and MTS Health Partners, L.P. as restructuring investment
banker.
Additional information about the Chapter 11 case, including
access to Bankruptcy Court documents, is available online at
https://cases.stretto.com/PearTherapeutics; or call our hotline at
855.944.1910 (for toll-free U.S. and Canada calls) or 714.252.6860
(for tolled international calls) or via email at
TeamPearTherapeutics@stretto.com.
Forward-Looking Statements
This press release includes statements that are, or may be
deemed, “forward-looking statements.” In some cases, these
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms “believes,”
“estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,”
“could,” “might,” “will,” “should,” “approximately” or, in each
case, their negative or other variations thereon or comparable
terminology, although not all forward-looking statements contain
these words.
These forward-looking statements reflect the current beliefs and
expectations of management made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
We caution you that forward-looking statements are not guarantees
of future performance and that our actual results of operations,
financial condition and liquidity, and the development of the
industry in which we operate may differ materially from the
forward-looking statements contained herein. Any forward-looking
statements that we make in this press release speak only as of the
date of such statement, and we undertake no obligation to update
such statements to reflect events or circumstances after the date
of this press release or to reflect the occurrence of unanticipated
events.
Pear’s forward-looking statements in this press release include,
but are not limited to, statements about Pear’s plans to sell its
assets pursuant to Chapter 11 of the Bankruptcy Code and the extent
and timing of any such sales; Pear’ intention to continue
operations during the Chapter 11 case and its ability to fund its
post-petition operations; Pear’s belief that the sale process will
be in the best interest of Pear and its stakeholders; and other
statements regarding Pear’s strategy and future operations,
performance and prospects, among others. These forward-looking
statements are based on current expectations and beliefs concerning
future developments and their potential effects. There can be no
assurance that future developments affecting Pear will be those
anticipated. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond Pear’s control) or
other assumptions that may cause actual results or performance to
be materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include,
but are not limited to, the risks associated with the potential
adverse impact of the Chapter 11 filings on Pear’s liquidity and
results of operations; changes in Pear’s ability to meet its
financial obligations during the Chapter 11 process and to maintain
contracts that are critical to its operations; the outcome and
timing of the Chapter 11 process and any potential asset sale; the
effect of the Chapter 11 filings and any potential asset sale on
Pear’s relationships with vendors, regulatory authorities,
employees and other third parties; possible proceedings that may be
brought by third parties in connection with the Chapter 11 process
or any potential asset sale; uncertainty regarding obtaining
Bankruptcy Court approval of a sale of Pear’s assets or other
conditions to any potential asset sale; and the timing or amount of
distributions, if any, to Pear’s stakeholders.
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