Cue Health (NASDAQ:HLTH) stock is down on Wednesday after the healthcare technology company announced plans to wind down its business.
According to a press release from Cue Health, the company has filed voluntary petitions under Chapter 7 of the U.S. Bankruptcy Code to pursue this wind-down. The company notes this comes after unsuccessful attempts to secure additional financing or a strategic transaction.
To go along with this, the company has terminated all of its employees. This also includes all the executives leading Cue Health and members of the board of directors. It expects a bankruptcy trustee to take over its operations to conduct an asset sale and repay debts.
What This Means for HLTH Stock
Cue Health was already in danger of having its shares delisted due to certain delinquencies. Now, the company is expecting further communication from the Nasdaq Exchange, which will result in its shares being delisted. The company doesn’t intend to appeal any decision made by the exchange.
HLTH stock is seeing heavy trading on Wednesday alongside the wind-down news. More than 11 million shares have changed hands as of this writing, well above its daily average trading volume of about 8 million shares.
HLTH stock is down 39.7% as of Wednesday morning.
There are plenty of other stock market stories traders are going to want to read about today!
Luckily, we have all of the hottest stock market news that investors need to know about on Wednesday! That includes everything happening with shares of Faraday Future (NASDAQ:FFIE) stock, Banzai International (NASDAQ:BNZI) stock and Reshape Lifesciences (NASDAQ:RSLS) stock today. All of that info is good to go at the links below!
More Stock Market News for Wednesday
- Why Is Faraday Future (FFIE) Stock Down 32% Today?
- Why Is Banzai International (BNZI) Stock Up 25% Today?
- Why Is Reshape Lifesciences (RSLS) Stock Up 80% 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 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.
