ARCA Bio. ($23M market-cap) is a biotech company dedicated to developing genetically and other targeted therapies for cardiovascular diseases.  They were developing rNAPc2, a tissue factor inhibitor to potentially treat hospitalized Covid-19 patients. After unsatisfactory clinical trials, the company decided to pursue a strategic review of the business back in May 2022. Just a month after, Jacob Ma-Weaver from Cable Car Capital joined the board of directors and the fund now owns around 30% of the company. A company director, Christopher Ozeroff, also owns 30% of the company.

While the review process has been slow, last week two of the 8 company directors resigned from the board, interestingly both had a medical background. Now the company has just 5 employees, 4 fulltime. On top of this, the company has one lease obligation for approximately 5,200 square feet of office facilities in Westminster, Colorado which serves as the Company’s primary business office that ends on April 1st, 2024. While they do have a renewal option for another 36 months, it remains unlikely that they will exercise it.

The management has been conservative with capital since the strategic review announcement. The company burned just $1M in R&D expenses in all of 2023 and just $1M in total expenses in Q4 2023. The company also has no outstanding preferred or warrants. Based on the numbers from the latest 8-K, here’s a rough swag estimate excluding any IP:

I’m accounting for 4Q worth of G&A expenses in 2024 but given the sharp drop from 2022 to 2023, I think this is a conservative estimate.

Disclosure: I own shares of ABIO