Sientra (NASDAQ: SIEN) stock saw a meteoric rise on Thursday following the announcement of its plans to pursue a business sale via a voluntary Chapter 11 process.
Sientra (SIEN) has officially filed for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware on February 12, 2024. The company has announced its intention to pursue a sale of its business under Section 363 of the Bankruptcy Code, all while ensuring continuous support for its customers during this challenging period.
Sientra plans to tap into existing cash reserves and secure $22.5 million in new money debtor-in-possession financing from its current lenders to facilitate the sale and ensure the continuity of its operations. This financing package will also involve a substantial “roll-up” of $67.5 million of Sientra’s prepetition debt obligations. Notably, the company determined to maintain normal business activities during this challenging period.
Ron Menezes, Sientra’s President and Chief Executive Officer, has expressed optimism regarding the company’s future amidst acquisition interests. He stated,
“Our goal is to emerge from this process with increased financial stability and positioned for long-term success under new ownership, and we are very encouraged that multiple parties have expressed interest in an acquisition of Sientra.”
He added,
“We look forward to the opportunity to become part of an organization that understands the value of our broad product portfolio and legacy in plastic surgery. In the interim, we remain focused on providing our customers with quality service, continuous manufacturing, and access to our products.”
Sientra (NASDAQ: SIEN) Stock Performance
SIEN stock soared 89.95% to close at $0.34 on Thursday. The traders had exchanged hands with 121,774,376 (121.77 million) shares compared to the average daily trading volume of 219.06 thousand.
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