Addvantage Technologies (NASDAQ:AEY) stock is sliding lower on Friday after the communications infrastructure services and equipment company announced its bankruptcy filing.
This is a voluntary bankruptcy filing by the company using Chapter 1 of Title 11. That will see the company taken control by a trustee from the U.S. Trustee’s Office of the Bankruptcy Court.
Investors will note that this means Addvantage Technologies’ board of directors will lose control over the company. The same holds true for its Fulton Technologies, Nave Communications and ADDvantage Triton LLC subsidiaries. This has resulted in all board members resigning.
What This Means for AEY Stock
The trustee overseeing Addvantage Technologies will be responsible for the liquidation of the company’s assets. That will see them use the funds from those sales to pay claims under the bankruptcy code.
With this liquidation plan, it doesn’t look like AEY stock will exist for much longer. The filing is likely to trigger the delisting of the shares from the Nasdaq Exchange.
With this bankruptcy filing comes some 56,000 shares of AEY stock changing hands. That’s already above its daily average trading volume of about 50,000 shares.
AEY stock is down 4.9% as of Friday morning.
Investors can find all of the latest stock market stories below!
We have all of the hottest stock market news ready to go on Friday! That includes everything happening with shares of GRI Bio (NASDAQ:GRI), TruGolf (NASDAQ:TRUG) and Exxon Mobil (NYSE:XOM) stock. You can find out more on these matters at the following links!
More Stock Market News for Friday
- Why Is GRI Bio (GRI) Stock Down 21% Today?
- Why Is TruGolf (TRUG) Stock Up 35% Today?
- XOM Stock: Lower Oil Prices Are Dragging Exxon Down
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 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.
