Codiak BioSciences (NASDAQ:CDAK) stock is falling hard on Monday after the company announced plans for an asset sale through a Chapter 11 bankruptcy.
According to a press release, Codiak started the marketing process before entering into Chapter 11. The company did so in an effort to gauge interest in the sale of its assets. Codiak is currently in “ongoing discussions with several parties.”
Codiak BioSciences also expects this process to end as soon as possible. Upon completion, the company believes it will have enacted an entire sale of its business or the majority of its core business.
President and CEO Douglas E. Williams said the following about the news:
“The Board and management team have thoroughly assessed all of our strategic options and believe that this structured process represents the best possible solution for Codiak, taking into account our financial needs and the stage of our clinical and research programs.”
CDAK Stock Movement Today
Considering the news of the asset sale and bankruptcy filing, it makes sense that CDAK stock is seeing heavy trading today. As of this writing, more than 6 million shares have changed hands. That’s a massive surge compared to its daily average trading volume of about 170,000 shares.
CDAK stock is down 52.3% as of Monday afternoon.
Investors seeking more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Monday! A few examples include why shares of Unity Biotechnology (NASDAQ:UBX), Meta Platforms (NASDAQ:META) and First Citizens Bancshares (NASDAQ:FCNCA) stock are in the news today. You can catch up on all of this news at the links below!
More Monday Stock Market News
- Why Is Unity Biotechnology (UBX) Stock Down 52% Today?
- Why META Is the Best Stock to Buy If the U.S. Bans TikTok
- 10 Things for Investors to Know About the First Citizens-Silicon Valley Bank Deal
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 hold (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.