NanoString Technologies (NASDAQ: NSTG) stock soared almost 100% on Friday after securing $47.5 million in new financing to bolster its restructuring efforts.
NanoString Technologies (NSTG) has disclosed a credit arrangement with its lenders for $47.5 million in new financing. This marks an increase from the initially pledged $40 million. The Seattle-based company, currently undergoing a restructuring process, has confirmed that $12.5 million in term loans has already been approved by the U.S. Bankruptcy Court on February 5, 2024, while $35 million is expected upon final court approval later this month.
The firm says this funding will play a crucial role in sustaining its operations, which include sales, product development, and other business activities, throughout the restructuring phase.
Brad Gray, the President and CEO of NanoString, thanked the noteholders for their support. He assured stakeholders that the company remains committed to sustaining its business operations and actively seeking ways to ensure its stability in the future.
The details of NanoString’s court-supervised restructuring process are accessible to the public through a website managed by the company’s claims agent, Kroll. NanoString is getting legal and financial advice for restructuring from Willkie Farr & Gallagher LLP, AlixPartners LLP, and Perella Weinberg Partners L.P.
This new funding announcement comes shortly after the company filed for Chapter 11 bankruptcy. This process carries inherent risks and uncertainties, including potential impacts on the company’s finances and day-to-day operations.
NanoString (NASDAQ: NSTG) Stock Reaction
NSTG stock surged 97.93% to close at $0.23 on Friday. The traders had exchanged hands with 416,625,398 (416.62 million) shares compared to the average daily trading volume of 9.99 million.