HTGM - HTG Molecular stock tanks in wake of Chapter 11 bankruptcy filing

2023-06-06 12:09:22 ET

Shares of HTG Molecular Diagnostics ( NASDAQ: HTGM ) plunged Tuesday, the day after the life sciences company filed for Chapter 11 bankruptcy protection.

HTG shares recently sold at $0.93, down 45% from Monday's close, at around 11:45 a.m. ET. The stock opened at $0.91.

HTG disclosed the bankruptcy news in an SEC filing on Monday, noting that the Chapter 11 filing could trigger a default on its $2.7M loan agreement with Silicon Valley Bank, now a unit of First-Citizens Bank and Trust.

In its 10-Q filing in May, HTG expressed doubts about its ability to remain as a going concern, adding that it believed it had sufficient resources to fund operations through July. The company noted that a "material adverse change" in the company could trigger a default on its loan agreement with Silicon Valley Bank, which in turn could prompt the bank to foreclose on its assets.

The company also disclosed in its 10-Q that it owed around $3.8M to NuvoGen Research.

More on HTG Molecular:

HTG Molecular GAAP EPS of -$2.28 misses by $0.34, revenue of $1.03M misses by $0.57M

HTG Molecular Diagnostics, Inc. SEC Filing - Quarterly Report (10-Q) May 10, 2023

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