SANGAMO THERAPEUTICS, INC 8-K

What Happened
Sangamo Therapeutics, Inc. (SGMO) filed an 8-K reporting that on June 25, 2026 its Audit Committee terminated Ernst & Young LLP (EY) as the company’s independent registered public accounting firm following Sangamo’s voluntary Chapter 11 bankruptcy petition (Case No. 26-10989). EY’s audit reports for the fiscal years ended December 31, 2024 and December 31, 2025 included an explanatory going-concern paragraph but did not contain adverse opinions, disclaimers, or qualifications; EY reported no disagreements or reportable events for those periods and provided a letter dated June 30, 2026 (Exhibit 16.1). The company has not yet engaged a replacement independent auditor.
Separately, on June 24, 2026 Sangamo’s common stock began trading on the OTCID Basic Market under the symbol “SGMOQ.” The company’s common stock remains listed on the Nasdaq Capital Market because Nasdaq’s April 28, 2026 delisting determination is stayed pending Sangamo’s appeal before the Nasdaq Hearings Panel.

Key Details

• Audit termination date: June 25, 2026; EY letter dated June 30, 2026 (attached as Exhibit 16.1).
• EY’s reports for FY 2024 and FY 2025 contained a going-concern explanatory paragraph but no adverse opinions or disagreements.
• Chapter 11 filing: voluntary petition, Case No. 26-10989.
• Market trading change: common stock began trading on OTCID Basic Market as “SGMOQ” on June 24, 2026; Nasdaq listing currently stayed pending appeal.

Why It Matters

• Auditor change: Losing EY means Sangamo must find a new independent auditor, which can affect audit continuity and timing of future SEC filings (important for investors tracking reported financials). The absence of disagreements suggests EY’s historical audits were not qualified aside from going-concern language.
• Bankruptcy and market access: The Chapter 11 filing is the primary driver of these actions. Trading on the OTC market can reduce liquidity and visibility compared with Nasdaq; however, the Nasdaq delisting is not final while Sangamo’s appeal is pending.
• Practical investor implications: Expect potential delays or changes in financial reporting, lower liquidity and wider bid/ask spreads on OTC trading, and continued uncertainty until the bankruptcy and Nasdaq appeal are resolved.