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- SmileDirectClub (NASDAQ:SDC) lost ~63% in post-market trading Friday after the clear aligner maker announced it filed for Chapter 11 bankruptcy as part of an initiative to reorganize its financials.
- According to a statement released late on Friday, the Nashville, Tennessee-based medical device maker has sought Chapter 11 bankruptcy protection in a case filed in a bankruptcy court for the Southern District of Texas.
- Concurrently, SmileDirectClub (SDC) announced a recapitalization transaction to bolster its balance sheet as bankruptcy proceedings get underway.
- Per the terms, SDC’s founders have pledged at least $20M for the company to ensure its near- and long-term financial health, SmileDirectClub (SDC) said.
- Up to $60M of additional funding will be available, subject to conditions including the completion of a marketing process.
- SDC’s rivals in the market for clear aligners include Align Technology (ALGN), Envista Holdings (NVST), and DENTSPLY SIRONA (XRAY).
Yet another once-hot DTC company lose its bearings
Bet Align Technology is all smiles with one less direct competitor! Longz ALGN! 🙂
Can not understand how this Co unable to get it together. Had two kids w/braces. One cost a fortune w/Align, whose stock has done very well. 2nd got similar results for a fraction of the cost w/SDC. I’ve never invested in SDC but always been tempted as it seems like IF other experienced similar results SDC would eat ALGN’s lunch? Seems like it’d be hard Not to succeed w/such a massive price advantage?
@Guiley The CEO didn’t care. He is about to steal the company from the stock holders
@otcg Yep not surprising. Probably is.