Tattooed Chef’s stock nosedives on Chapter 11 bankruptcy news.
Shares of Tattooed Chef, Inc. (NASDAQ: TTCF) plummeted by 44.34% to $0.30 on Monday morning. This drastic decline comes after the company announced its intention to file for voluntary Chapter 11 Bankruptcy protection.
In an effort to overcome its financial challenges, Tattooed Chef plans to market its assets and invite bids under Section 363 of the Bankruptcy Code. Their goal is to secure the highest price possible, and they will oversee the bidding process alongside their advisors, under the watchful eye of the Bankruptcy Court.
Despite this setback, the company’s operations will continue during the Chapter 11 process, thanks to debtor-in-possession financing. Tattooed Chef aims to conduct an efficient sale that will provide clarity for all stakeholders involved.
According to data from Benzinga Pro, TTCF has a 52-week high of $8.42 and a 52-week low of $0.50.
On Monday, the stock opened at $0.30, significantly lower than the previous day’s closing price of $0.55. Currently, the stock is trading in the range of $0.28 to $0.33. The trading activity surrounding TTCF has seen a surge, with 3,493,688 (3.49 million) shares changing hands. This volume is higher than the 3-month average of 1.18 million shares, indicating increased investor interest and concern in light of the bankruptcy announcement.
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
