By Colin Kellaher
SmileDirectClub shares collapsed to a new all-time low Monday after the oral-care company filed for chapter 11 bankruptcy as part of a recapitalization aimed at bolstering its balance sheet.
Shares of the Nashville, Tenn., company were recently changing hands at 17.4 cents, down 58%, after touching an all-time low of 14 cents earlier in the session.
After the closing bell Friday, SmileDirect said its founders plan to invest at least $20 million as part of the recapitalization plan, which it expects will result in a significant or total loss of the company’s equity value.
Shareholders are generally wiped out in bankruptcy cases.
SmileDirect went public at $23 a share in September 2019, but the stock fell 28% on its first trading day and never again reached its IPO price.
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