Fast Radius Files for Chapter 11 Bankruptcy, Begins Marketing and Sale Process
Fast Radius, Inc. (Nasdaq: FSRD) announced that it is starting a legal process to carry out various strategic transactions and that it has submitted requests for relief in Delaware under Chapter 11 of Unites States Bankruptcy Code.
The Company has asked the court to set up certain marketing and selling procedures, including a proposed bid date of Dec. 5, 2022. In addition to continuing to investigate and evaluate strategic options, the company is actively in talks with possible partners.
Fast Radius has put more than $200 million into developing the first-ever Cloud Manufacturing Platform. They provide engineers with an ecosystem of cloud programming software tools and manufacturing technologies to create commodities for $360 bn industry. Since 2020, they have worked with 23,000 software users over 2,000 manufacturing partners, noted Lou Rassey, CEO, Co-Founder of Fast Radius. Fast Radius is grateful for the ongoing assistance of partners and suppliers during this process. They acknowledged and appreciated the efforts of team members in continuing to serve their clients, he further added.
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Fast Radius would continue operating as a “debt collector” in accordance with the pertinent provisions of the applicable Bankruptcy Code. The Company has submitted relevant motions asking the court to grant it permission to use reserves and operating cash outflows to fund its ongoing activities all through this process, along with uninterrupted payout of staff salaries and benefits.
The company expects that its warrants and common stock will be taken off the market from the Nasdaq and become eligible for trading on the Pink Sheets or OTC Bulletin Board. However, there is no guarantee that trading in the Company’s warrants and common stock will start or continue on the Nasdaq Bulletin Board.
The company will not have its third quarter of 2022 earnings conference in context of the insolvency case.
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