SmileDirectClub (NASDAQ:SDC) stock is falling hard on Monday after the oral care company filed for Chapter 11 bankruptcy.
A press release from SmileDirectClub reveals that it has filed for Chapter 11 bankruptcy in order to effect a recapitalization transaction. The company notes that it will continue normal operations throughout the bankruptcy process.
As for how it will recapitalize, SmileDirectClub says its founders have agreed to invest at least $20 million into the company. To go along with that, the company may be able to receive up to $60 million if it can reach certain marketing goals.
David Katzman, CEO of SmileDirectClub, said the following about the bankruptcy filing:
“We are taking this step today to help ensure we are well positioned to build upon the success of our SmileMaker Platform and CarePlus offering and to continue our mission of providing safe, convenient, and effective oral care to our customers.”
SDC Stock Movement on Monday
Considering the bankruptcy filing, it will come as no surprise that SDC stock is seeing heavy trading on Monday. As of this writing, more than 2.2 million shares of the company’s stock have changed hands. That’s already above its daily average trading volume of about 2.1 million shares.
SDC stock is down 54.2% as of Monday morning, erasing any gains it made so far in 2023.
Investors searching for more of the latest stock market news today are in the right place!
We have all of the biggest stock market stories that traders need to know about on Monday! A few examples include why shares of Invitae (NYSE:NVTA) and Aerwins Technologies (NASDAQ:AWIN) stock are up today, as well as the biggest pre-market stock movers this morning. All of that news is ready to go below!
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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.
