September looms as a risk month for stocks, Yardeni says
On Thursday, Ontrak, Inc. (NASDAQ:OTRK) announced that its board of directors approved the filing of a voluntary petition for relief under Chapter 7 of the U.S. Bankruptcy Code. Following this decision, all members of the board of directors resigned from their positions effective immediately. The company’s financial struggles were evident in its recent performance, with InvestingPro data showing negative EBITDA of $18.5M and a market capitalization that had shrunk to just $0.53M, while operating with significant debt obligations.
The company stated that none of the director resignations were due to any disagreement related to Ontrak’s operations, policies, or practices. The announcement was made in a press release statement included in a filing with the Securities and Exchange Commission.
Ontrak, based in Miami, Florida, provides services in the health and allied services sector. The company’s common stock is listed on the NASDAQ Capital Market under the ticker OTRK.
The filing of the Chapter 7 petition initiates a process for the liquidation of the company’s assets under court supervision. The SEC filing was signed by James J. Park, Chief Financial Officer.
In other recent news, Ontrak, Inc. has reported several significant developments. The company disclosed that a major prospect has decided not to pursue a partnership, impacting its Wholehealth+ and Engage programs by removing up to 29,000 potential members from its near-term sales outlook. Additionally, Ontrak has amended its agreement with Acuitas Capital LLC, allowing for the sale of up to $8.45 million in senior secured convertible promissory notes, providing potential financial flexibility. The amendment, effective as of June 27, 2025, outlines that Acuitas has committed to purchasing these notes, which are payable on demand under specific conditions. In another financial move, Ontrak has priced a public offering of 6,666,667 shares of common stock and 26,666,668 warrants at a combined price of $0.60 per share and accompanying warrants. Each share or pre-funded warrant includes four warrants to purchase additional common stock, contingent upon stockholder approval. These warrants will expire five years after receiving approval. These developments reflect Ontrak’s ongoing efforts to navigate financial challenges and adjust its strategic plans.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.