Why Is HTG Molecular Diagnostics (HTGM) Stock Down 42% Today?


  • HTG Molecular Diagnostics (HTGM) stock is falling on a bankruptcy filing.
  • The company also noted that the filing accelerates its loans due.
  • HTG Molecular has also fired one of its top executives.
HTGM Stock - Why Is HTG Molecular Diagnostics (HTGM) Stock Down 42% Today?

Source: Room's Studio / Shutterstock

HTG Molecular Diagnostics (NASDAQ:HTGM) stock is falling on Tuesday after the company announced a Chapter 11 bankruptcy filing.

According to the filing, HTG Molecular Diagnostics will operate as a “debtor-in-possession” business during the bankruptcy. It’s also seeking a variety of first-day motions that will allow it to continue normal operations.

To go along with that, the filing also accelerates the obligations of the company’s debts. That includes a $2.68 million loan held by Silicon Valley Bank, which is now a division of First-Citizens Bank and Trust Company.

Finally, HTG Molecular Diagnostics clarified that it has terminated Senior Vice President and Chief Commercial Officer Byron Lawson at the start of the month. However, the company also signed a deal for his consulting services during a one-month transition period. This has the company agreeing to pay Lawson $23,000.

What This Means for HTGM Stock

It should come as no surprise that HTGM shares are falling today alongside the bankruptcy news. The idea of the company going under has investors unsettled and many are selling their stakes as a result.

This has shares of HTGM stock seeing strong trading on Tuesday. As of this writing, more than 122,000 shares have changed hands. That’s closing in on the company’s daily average trading volume of about 191,000 shares.

HTGM stock is down 42% as of Tuesday morning.

There’s even more stock market news worth reading about below!

InvestorPlace is home to all of the hottest stock market news traders need to know about on Tuesday! A few examples include why shares of GameStop (NYSE:GME), Palantir (NYSE:PLTR) and Greenlane (NASDAQ:GNLN) stock are on the move today. We’ve got all of that news ready to go with the following links!

More Stock Market News for Tuesday

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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/06/why-is-htg-molecular-diagnostics-htgm-stock-down-42-today/.

©2023 InvestorPlace Media, LLC