ViewRay (NASDAQ:VRAY) stock is falling hard on Monday after the MRI company announced its voluntary Chapter 11 bankruptcy filing.
According to the company’s bankruptcy filing, ViewRay intends to pursue the sale of its business as part of the Chapter 11 process. That would include a portion of or all of its assets. ViewRay has received $6 million in debtor-in-possession to allow it to do this during the bankruptcy.
In addition to this, there have been several leadership changes with the bankruptcy. That includes the Board of Directors shrinking from nine members to seven. CEO Scott Drake also gave up his role and now acts as a director of the company. Taking over the CEO role is former Chief Commercial Officer Paul Ziegler.
Ziegler said the following amid the bankruptcy news:
“Despite the operating challenges, MRIdian has facilitated real societal value and remains critically important for a broad population of cancer patients, including those who were previously considered untreatable […] We deeply appreciate our teammates, customers, partners, and patients that we serve. We will continue to work diligently to maximize value for the benefit of all stakeholders.”
VRAY Stock Movement Today
As expected, shares of VRAY stock are seeing heavy trading today as investors sell shares. That has some 21 million shares changing hands as of this writing. For comparison, the company’s daily average trading volume is about 2.7 million shares.
VRAY stock is down 68.9% as of Monday 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.
