Genetic test provider Invitae (OTC:NVTA) has filed for voluntary Chapter 11 protection in a bankruptcy court in New Jersey. The company plans to continue to operate during the bankruptcy proceedings while it moves to execute a sale process.
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While Invitae has taken action to improve its cash flow over the past 18 months, it is taking the bankruptcy route with the support of its senior debt holders, who have agreed to vote in favor of its Chapter 11 plan and sale process. Over the last few months, Invitae slashed its headcount to lower expenses, executed an asset sale to Natera (NASDAQ:NTRA), and divested the assets of its health tech platform, Ciitizen.
According to filings, the company estimates that its assets are worth $500 million to $1 billion, while its liabilities range from $1 billion to $10 billion. According to Reuters, the genetic testing company pegs its number of creditors between 1,000 and 5,000.
Who Invests in NVTA?
Backed by Wall Street stalwarts such as Cathie Wood and SoftBank, Invitae has seen its stock price crater by a whopping 99.94% over the past three years. Despite this price erosion, NVTA remained one of the most shorted stocks on the Street until recently.
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