Why Are HTG Molecular Diagnostics Shares Plunging Today

Author: Vandana Singh | June 06, 2023 01:47pm

• HTG Molecular Diagnostics (NASDAQ:HTGM) stock is down on Tuesday after the company announced a Chapter 11 bankruptcy filing.
• According to the filing, HTG Molecular Diagnostics will operate as a "debtor-in-possession" business during the bankruptcy. 
• It's also seeking a variety of first-day motions that will allow it to continue normal operations.
• The filing also accelerates the obligations of the company's debts, including a $2.68 million loan held by Silicon Valley Bank, now a division of First-Citizens Bank and Trust Company.
• HTG Molecular Diagnostics notified the termination of Senior Vice President and Chief Commercial Officer Byron Lawson at the start of the month. 
• However, the company also signed a deal for his consulting services during a one-month transition period. This has the company agreeing to pay Lawson $23,000.
• In its Q1 earnings release, the company said partnering discussions had been initiated with global biopharmaceutical companies around its portfolio of drug candidate molecules in oncology and neurodegenerative disease indications. 
• In addition, HTG has initiated partnering conversations regarding the use of HTG's drug discovery engine within the partners' portfolios of drug assets.
• HTG Molecular reported Q1 sales of $1 million, on a net loss of $5 million.
• Price Action: HTGM shares are down 45.8% at $0.91 on the last check Tuesday.

Posted In: HTGM