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Addvantage Technologies (NASDAQ:AEY) is taking a beating in the stock market today, announcing a descent into bankruptcy through a voluntary Chapter 11 filing under Title 11. This move effectively casts the company under the trusteeship of the U.S. Trustee’s Office of the Bankruptcy Court.
The filing has upheaved Addvantage Technologies, stripping its board of directors of control over the company along with its subsidiaries – Fulton Technologies, Nave Communications, and ADDvantage Triton LLC, prompting the resignation of all board members.
Implications for AEY Stock
The trustee overseeing Addvantage Technologies is now tasked with the liquidation of the company’s assets and using the proceeds from these sales to settle claims under the bankruptcy code.
With the company’s future outlined in a liquidation plan, the continued existence of AEY stock appears bleak. The filing is expected to set off the delisting of the shares from the Nasdaq Exchange.
This bankruptcy development has already triggered a surge in trading activity, with around 56,000 shares of AEY stock being exchanged, surpassing its daily average trading volume of about 50,000.
As of Friday morning, AEY stock has plummeted by 4.9%.
Interested in more stock market news? Check out the latest developments on other companies like GRI Bio (NASDAQ:GRI), TruGolf (NASDAQ:TRUG), and Exxon Mobil (NYSE:XOM) stock.
Additional Market News for Friday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.