Cue Health files for Chapter 7 bankruptcy

Business Financial Stock Drop Social

Cue Health has filed for Chapter 7 bankruptcy following the announcement of cessation of operations and termination of all remaining employees last week.

In a form filed with the U.S. Securities and Exchange Commission (SEC), the company noted that it had filed in the U.S. Bankruptcy Court for the District of Delaware on May 28, "after considering all strategic alternatives."

Additionally, the firm wrote that it has received a delisting warning from the Nasdaq stock market. Cue was out of compliance with the requirement that companies with securities listed on Nasdaq file their periodic reports with the SEC in a timely manner, due to being delinquent in filing its Form 10-Q. The firm also noted that it has not satisfied the listing requirement of maintaining the minimum bid price of $1 per share.

Furthermore, Cue wrote that it has terminated all of its employees and executive officers as of May 24, notifying all employees of the impending layoff on May 20. All of the  members of Cue's board of directors also resigned on May 24.

"Cue is grateful to its employees for their contributions, hard work, and commitment to the business, and thankful to its customers and vendors for their partnership over the years," the firm said in a statement.

A bankruptcy trustee will be appointed to oversee the asset liquidation and creditor repayment plan as part of the Chapter 7 bankruptcy process.

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