Shares of InVivo Therapeutics Holdings Corp. (NASDAQ: NVIV) skyrocketed by over 130% on Tuesday. This surge comes on the heels of a tumultuous period for the company, which saw a 26% decline in trading on Monday, contributing to a year-to-date decrease of 71.9%.
The sudden upswing in NVIV shares has surprised market analysts and investors, particularly in light of the absence of any significant news or announcements from the clinical-stage biomaterials and biotechnology firm. Instead, heavy trading activity appeared to be the primary catalyst, with a staggering 187,774,743 (187.77 million) shares changing hands on Tuesday, far surpassing the average daily trading volume of 110.18K.
InVivo (NASDAQ: NVIV) Faces Chapter 11 Bankruptcy
Despite the lack of recent press releases or filings with the Securities and Exchange Commission (SEC), underlying uncertainties persist. InVivo Therapeutics has been navigating through Chapter 11 bankruptcy proceedings initiated last week. This bankruptcy filing has injected significant volatility into NVIV stock, presenting a considerable risk for investors due to the company’s uncertain future.
In the face of bankruptcy, InVivo Therapeutics remains determined to continue operations and is exploring options such as asset sales. However, the duration of its viability remains uncertain, posing a significant challenge for investors seeking stability amidst the company’s restructuring efforts.
As developments unfold, stakeholders are advised to exercise caution and closely monitor the situation surrounding InVivo Therapeutics, recognizing the inherent risks associated with its current financial position and the ongoing bankruptcy proceedings.