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.
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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.
