HTG Molecular Diagnostics (HTGM) stock is falling 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.
To go along with that, the filing also accelerates the obligations of the company’s debts. That includes a $2.68 million loan held by Silicon Valley Bank, which is now a division of First-Citizens Bank and Trust Company.
Finally, HTG Molecular Diagnostics clarified that it has terminated 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.
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