Fast Radius has filed for Chapter 11 bankruptcy, launching an in-court process to effectuate one or more strategic transactions.
Key highlights:
- Fast Radius has requested the court establish certain sale and marketing procedures; discussions are ongoing with one or more potential partners.
- Customary motions have been requested for the court to authorise Fast Radius' ability to pay employees.
- Company says it will continue operating and serving customers in the normal course.
The company’s board has taken the decision to file for bankruptcy after ‘recent headwinds in the capital markets’ have hindered the company’s capacity to ‘put in place the capital structure needed.’ It comes just nine months after Fast Radius listed on the NASDAQ stock exchange, which it announced in July 2021, and a wave of redundancies that commenced in the summer.
Though it is filing for voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the District of Delaware, the company says it will ‘continue operating and serving customers in the normal course.’ That normal course has so far seen the company harness Digital Light Synthesis, Multi Jet Fusion and Fused Deposition Modelling – in addition to subtractive methods – to manufacture products in the automotive, aerospace and consumer goods industries.
Through its bankruptcy filing, Fast Radius has requested that the court establish certain sale and marketing procedures, with the company said to be in active discussions with one or more potential partners. Strategic alternatives are being explored and evaluated, while a proposed bid deadline of December 5, 2022, has been set.
Until then, Fast Radius will continue to operate its business as a debtor-in-possession under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the U.S. Bankruptcy Code. Customary motions have been requested for the court to authorise Fast Radius’ ability to use cash on hand and operating cash flows to support its continued operation throughout this process. This includes payment of employee wages and benefits without interruption. The company has also said that it intends to pay suppliers and vendors in full under normal terms for goods and services provided on or after the filing date.
Per a company press release, Fast Radius expects to operate without interruption, with ongoing services and partnerships to be maintained, but anticipates that its common stocks and warrants will be delisted from the NASDAQ Stock Exchange. Though stocks and warrants will be eligible to be quoted on either the OTC Bulletin Board of Pink Sheets, no assurances can be made that trading in the company’s common stock on the OTC Bulletin Board or Pink Sheets will be commence or maintained.
Fast Radius co-founder and CEO Lou Rassey commented: “Fast Radius has invested over 200 million USD creating a first-of-its-kind Cloud Manufacturing Platform. Like cloud computing, we provide a platform of software tools and manufacturing solutions to help engineers design and make commercial grade parts for a 360 billion USD market. We have served over 2,000 manufacturing customers and 23,000 software users since 2020. We thank our suppliers and partners for their continued support through this process. We also thank our team members for the continued commitment and dedication to serving our customers.
“Every year since our founding, Fast Radius has grown our revenue, expanded our customer base and extended our service offerings. However, recent headwinds in the capital markets have inhibited our ability to adequately put in place the capital structure needed. Our board has deemed this filing an appropriate next step. We continue to have conviction on the importance of innovation in manufacturing and the potential for our Cloud Manufacturing Platform.”
Fast Radius will now not conduct its Q3 2022 quarterly earnings call.
In the latest issue of TCT Magazine, we went through the doors at Fast Radius' Chicago West Loop microfactory.
