Why Cue Health Shares Are Getting Hammered

Cue Health Inc HLTH shares are trading lower by 24.9% to $0.07 during Wednesday’s session after the company announced that it filed voluntary petitions under Chapter 7 of the U.S. Bankruptcy Code in the District of Delaware to pursue a wind down of its business.

Additionally, on May 16 Cue Health terminated its Loan and Security Agreement, originally dated June 30, 2022, which included a $100 million secured revolving credit facility and a $20 million letter of credit subfacility. At the termination, Cue Health had no loans outstanding under this agreement and cash collateralized $504,440.40 for letters of credit issued under the agreement.

The bankruptcy filing will result in a Chapter 7 trustee being appointed to liquidate the company’s assets and pay off its claims according to the Bankruptcy Code.

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According to data from Benzinga Pro, HLTH has a 52-week high of $0.78 and a 52-week low of $0.05.