AppHarvest (NASDAQ:APPH) stock is taking a beating on Monday after the company filed for Chapter 11 bankruptcy protection.
This filing comes as AppHarvest seeks to reorganize its business. That includes transitioning its AppHarvest Berea operations to its distribution partner or an affiliate. This would net it $3.75 million but needs court approval first.
To go along with this, AppHarvest has secured $30 million of debtor-in-possession from a creditor. The company says it intends to use these funds to continue normal operations through its Chapter 11 and reorganization process.
Tony Martin, CEO of AppHarvest, said the following about the bankruptcy filing:
“The AppHarvest board of directors and executive leadership evaluated several strategic alternatives to maximize value for all stakeholders prior to the Chapter 11 filing. The Chapter 11 filing provides protection while we work to transition operation of our strategic plan, Project New Leaf, which has shown strong progress toward operational efficiencies resulting in higher sales, cost savings and product quality.”
How This Affects APPH Stock
APPH stock isn’t performing well today as investors react to the bankruptcy filing. This has more than 2.9 million shares of the company’s stock changing hands as of this writing. That’s already well above the company’s daily average trading volume of about 2 million shares.
APPH stock is down 43.3% as of Monday morning. The stock is also down 42.1% year-to-date (YTD) as of Friday’s close.
Investors seeking more of the most recent stock market news for Monday will want to keep reading!
We’ve got all of the latest stock market news that traders need to know about on Monday! That includes what has shares of Kodiak Sciences (NASDAQ:KOD) stock, Posco (NYSE:PKX) stock, and AMC Entertainment (NYSE:AMC) stock moving this morning. All of that news is ready to go at the links below!
More Stock Market News for Monday
- Why Is Kodiak Sciences (KOD) Stock Down 58% Today?
- Why Is Posco (PKX) Stock Up 18% Today?
- Why Is AMC Entertainment (AMC) Stock Up 39% Today?
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 risk.
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.
