Luke Lango Issues Dire Warning

A $15.7 trillion tech melt could be triggered as soon as June 14th… Now is the time to prepare.

Tue, June 6 at 7:00PM ET
 
 
 
 

Why Is Boxed (BOXD) Stock Down 41% Today?

  • Boxed (BOXD) stock is dropping on bankruptcy concerns.
  • The company said it might have to file for bankruptcy relief.
  • This comes as it negotiates with lenders.
BOXD Stock - Why Is Boxed (BOXD) Stock Down 41% Today?

Source: Shutterstock

Boxed (NYSE:BOXD) stock is falling hard on Wednesday after the company floated the possibility of bankruptcy to investors.

During a filing with the U.S. Securities and Exchange Commission (SEC), Boxed brought up that it may have to file for bankruptcy. This comes as the company negotiates with lenders concerning the satisfaction of milestones in its Forbearance Agreement.

According to Boxed’s SEC filing, there are several issues connected to its Forbearance Agreement. That includes it failing to deliver an acceptable debtor-in-possession budget, not entering into a binding debt commitment, or not making the repayment.

Here’s what Boxed says about the situation in that SEC filing:

“The Lenders have provided limited extensions for the satisfaction of these milestones to permit the Company and the Lenders to continue their discussions, although the Company may not be able to satisfy the terms of the prepayment at this time. In connection with the foregoing, the Company has implemented cash management strategies, including streamlining operations and headcount reductions.”

How This Affects BOXD Stock

Investors aren’t excited about the possibility of bankruptcy. That makes sense as it would present several problems for the company. It could even include the complete delisting of its shares if things get too bad.

This has some investors jumping ship, with around 1.3 million shares changing hands in early morning trading. However, that’s still below its daily average trading volume of about 3.4 million shares.

BOXD stock is down 41% as of Wednesday morning.

Investors looking for more of the latest stock market news will want to keep reading!

InvestorPlace is home to all of the most recent stock coverage traders need to know for Wednesday. That includes why shares of Inpixon (NASDAQ:INPX), Loyalty Ventures (NASDAQ:LYLT), and Jounce Therapeutics (NASDAQ:JNCE) stock are moving today. We’ve got all that news ready to go below!

More Wednesday Stock Market News

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/03/why-is-boxed-boxd-stock-down-41-today/.

©2023 InvestorPlace Media, LLC