SmileDirectClub's stock plummets 85% after Chapter 11 bankruptcy filing - MarketWatch
By: Wallace Witkowski (MarketWatch)
S E E D E D C O N T E N T
Last Updated: Sept. 29, 2023 at 7:33 p.m. ET First Published: Sept. 29, 2023 at 6:44 p.m. ET By
Wallace Witkowski
Founders have pledged at least $20 million to recapitalize company
SmileDirectClub has filed for Chapter 11 bankruptcy protection.
Referenced Symbols
SDC -6.64%
SmileDirectClub Inc. shares plummeted in the extended session Friday after the company said it had voluntarily filed for Chapter 11 bankruptcy protection as founders seek to recapitalize the teeth-straightening business.
SmileDirectClub shares SDC, -6.64%, which had been halted while up 0.9% in after-hours trading pending news, promptly dropped as much as 85% when trading in the stock reopened.
The stock had closed Friday's regular session down 6.6% at 42 cents a share, giving the company a market capitalization of just under $170 million.
In a statement late Friday, SmileDirectClub said that its "founders have committed to invest at least $20 million to bolster the company's balance sheet and to protect its near- and long-term financial health," and that "up to $60 million of additional capital is available upon satisfaction of certain conditions."
SmileDirect shares in after-hours trading Friday.
"The founders' investment in the company reflects their commitment to SmileDirectClub's mission of democratizing access to premium oral care, as well their conviction in the success of the recently launched SmileMaker Platform and CarePlus growth initiatives," the company said.
"To effectuate the transaction, SmileDirectClub has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas," according to the company.
SmileDirectClub has had a rocky time of it since its public debut a little over four years ago, when the company priced some 58.5 million shares at $23.
The stock never closed above $19.48, which occurred a week after the IPO, and had traded at a record intraday high of $21.10 during its post-IPO debut on the Nasdaq exchange, according to FactSet data.
Trolling, taunting, spamming, and off topic comments may be removed at the discretion of group mods.
Tags
Who is online
427 visitors
Maybe some things shouldn't be DIY.
not everyone can eat corn on the cob thru a picket fence...
They overinflated their stock
That, and there were issues with poor results, up to and including tooth loss.
I never thought they were a good idea. I had real braces, so did my daughter. How does something that comes in the mail work on straightening your teeth? It's not like they get tightened by the orthodontist once a week
Clear aligners can work, but should be prescribed by a dentist or orthodontist after a complete exam. Moving teeth means loosening them temporarily. If they're already loose due to gum disease, they can loosen to the point of falling out. If there are defects in the jaw bones, teeth can be moved right out of the jaw.
The aligners work by switching to a new aligner that applies more pressure about every 2 weeks.
I see. thanks for that info
I had metal braces. I hated them