Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Chrome Holding Co. (OTC:CHHC), formerly known as 23andMe Holding Co., with a current market capitalization of $128.42 million and trading at $30.04, filed a proposed Chapter 11 reorganization plan with the U.S. Bankruptcy Court for the Eastern District of Missouri on Friday. According to InvestingPro data, the company has shown concerning financial metrics, including weak gross profit margins. The filing follows the company’s earlier sale of substantially all its assets to TTAM Research Institute for $302.5 million in cash, with TTAM also agreeing to acquire Chrome’s Lemonaid telehealth business for $2.5 million, pending higher offers.
The proposed plan, according to a statement in the SEC filing, details how claims against the company and its affiliates will be treated if the court confirms the plan and all conditions are met. Secured and priority claim holders are set to receive payment in full in cash or other remedies specified by the plan. Creditors with claims related to U.S. and Canadian data breach settlements will receive distributions from dedicated settlement funds.
General unsecured creditors of Chrome and its Lemonaid business are proposed to receive proportional interests in trust assets established as part of the plan. Intercompany claims and interests may be reinstated or canceled to facilitate wind-down transactions. Holders of equity interests in Chrome Holding Co. would receive a portion of Class B trust interests as outlined in the plan documents.
The plan’s implementation is expected to be funded by proceeds from the asset sales, cash on hand, recoveries from retained causes of action, and cyber insurance policies. The company stated that the proposed plan and disclosure statement have been filed with the court but have not yet been approved. Solicitation of votes to accept or reject the plan will only occur after court approval of the disclosure statement.
Chrome Holding Co. cautioned that trading in its Class A common stock during the bankruptcy process is highly speculative and that trading prices may not reflect any actual recovery for shareholders. InvestingPro analysis shows the stock has declined 6.35% over the past year, with a Financial Health Score of 2.34, rated as ’Fair’. Investors seeking deeper insights into distressed companies can access additional ProTips and comprehensive financial metrics through InvestingPro’s advanced analytics platform.
This information is based on a statement in a press release and the company’s SEC filing.
In other recent news, 4Front Ventures (OTC:FFNTF) Corp. has filed for bankruptcy under the Canadian Bankruptcy and Insolvency Act. This legal proceeding is taking place in the District of British Columbia, with B. Riley Farber Inc. appointed as the trustee to manage the company’s assets. Additionally, 4Front Ventures was moved to the OTC Pink Market after failing to file audited financial statements for the year ending December 31, 2024. Meanwhile, Cryomass Technologies Inc. has been shifted to the OTC Expert Market due to delinquency in regulatory filings, restricting public access to its stock quotations.
White Fox Ventures, Inc. announced a leadership change and a pending sale of controlling equity to entrepreneur Mark A. Jones, representing 60% of the company’s total voting power. This transaction will be finalized once the purchase price is fully paid. Quartz Mountain Resources Ltd. has submitted its quarterly financial statements to the U.S. Securities and Exchange Commission, including management’s discussion and analysis. These developments highlight significant changes and challenges faced by these companies in the market.
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