Health care company BG Medicine Inc. (Nasdaq: BGMD), will need to raise additional funds for operations and to pay debt.

The Waltham, Mass.-based company says there is substantial doubt about the company's ability to continue as a going concern, or without the threat of liquidation, because of operating history, forecasted losses and negative cash flows, in a Nov. 6 filing with the U.S. Securities and Exchange Commission.

Although the company says it has enough cash on hand to operate through the end of the year, BG incurred a $13.9 million loss for the nine months ended Sept. 30, and expects to incur losses for the rest of the year.

BG says in the filing that it will need to raise additional funds to finance operations and service existing debt. In January, the company closed a public offering of 6.9 million shares to raise $13.8 million.

In May, the company got a notice from the Nasdaq exchange that shares of the company's stock were trading below the required value. The company has until March 24 to regain compliance. On Dec. 10, BG’s shares opened at $0.65. The company originally went public in February 2011.

BG develops therapies that aim to manage heart failure and related disorders. The company has developed two diagnostic tests, BGM Galectin-3, which aids in assessing prognoses of patients diagnosed with heart failure, and CardioScore, which is designed to identify individuals at high-risk for heart attack and stroke.

The company’s BGM test is currently reimbursed by the Centers for Medicare and Medicaid Services at $17.80 per test. BG is forecasting higher reimbursement levels for 2014, which it hopes will engage additional test providers and reduce operating expenses.

In February, the company got a $10 million secured term loan that matures in September 2015. The company amended the loan in May to allow for a three-month deferral of principal payments beginning May 1.

For last week’s edition of Turnaround Tuesday, see “Eagle Bulk Joins List of Shippers Suffering from Low Charter Rates.” 

For more struggling companies, see Mergers & Acquisitions’ Distressed Company Watch List

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