Cue Health (NASDAQ: HLTH) stock plummeted during early trading Wednesday after the company filed for Chapter 7 Bankruptcy.
Cue Health (HLTH) has filed voluntary petitions under Chapter 7 of the U.S. Bankruptcy Code in the District of Delaware, signaling its intent to wind down its business operations.
The decision to pursue Chapter 7 bankruptcy comes after Cue Health diligently endeavored to fortify its financial standing. The company implemented various measures aimed at reducing costs and enhancing operational efficiency. Additionally, Cue explored avenues for securing additional financing or engaging in strategic transactions. However, despite these efforts and following a comprehensive review, Cue’s Board of Directors, in consultation with the company’s advisors, has determined that seeking Chapter 7 relief is the most prudent course of action for the company and its stakeholders.
In light of this development, Cue expressed gratitude to its employees for their dedicated contributions and hard work, and to its customers and vendors for their longstanding partnership and support.
Cue Health will soon appoint a bankruptcy trustee to oversee the gathering and sale of its assets. The company will allocate the proceeds from these sales to creditors per the stipulations outlined in the Bankruptcy Code.
Cue Health (NASDAQ: HLTH) Stock Reaction
As of 10:09 a.m. (Eastern Time) Wednesday, HLTH stock traded at $0.0648, marking a 28.85% decrease compared to the previous trading session.
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