: SmileDirectClub’s stock plummets 85% after Chapter 11 bankruptcy filing

by | Sep 29, 2023 | Stock Market

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
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 condition …

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