The Fast Radius Inc (NASDAQ: FSRD) stock price rallied 47.35%, recovering most of yesterday’s losses after the company announced an accelerated acquisition timeline that left many wondering whether the ambitious plan could be successful.
YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY.
However, market participants seem to have had a change of heart today primarily due to the company’s confidence that it can meet the accelerated timeline approved by the United States Bankruptcy Court for the District of Delaware.
The company set a bid deadline of December 5, 2022, saying it is in discussions with potential acquirers and is considering other strategic alternatives, including those presented by new parties interested in acquiring the firm.
Lou Rassey, the Fast Radius’ Co-Founder and CEO, said: “We are pleased to have received approval of the bid procedures. This allows us to finish marketing our business and our first-of-its-kind Cloud Manufacturing Platform on an expedited timeline while continuing to serve our customers without interruption. We are excited to continue existing discussions and initiate new ones with potential strategic investors, partners and acquirers as we move through this process.”
The bankruptcy process surprised many and could cement a significant loss for institutional investors such as Palantir, who invested in the cloud-based engineering firm, buying shares priced at $10 each. Palantir invested $20 million in the company by buying 2 million shares at $10 each.
Fast Radius shares are now trading at a tiny fraction of their previous valuation and have erased over 98% of their initial value. As a result, most investors who bought shares at higher valuations are staring at significant losses unless the new buyers offer a high price for the company.
The cloud-based manufacturing company has an excellent business model as the demand for third-party design and manufacturing services balloons. Still, it had to file for bankruptcy due to its stock price deterioration and inability to raise more funding from the public markets.
*This is not investment advice.
Fast Radius stock price.
The Fast Radius (FSRD) stock price rallied 47.35% to trade at $0.1382, rising from Tuesday’s closing price of $0.1018.