Chicago-based manufacturing software company Fast Radius Inc. filed for bankruptcy this week.
The company filed for relief under Chapter 11 of the United States Bankruptcy Code in the District of Delaware.
This news comes less than year after the Chicago business went ahead with its plan to go public by merging with a special purpose acquisition company at a $1.4 billion valuation. The company said it anticipates that its common stock and warrants will be delisted from the Nasdaq Stock Exchange following this announcement.
“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,” said Lou Rassey, co-founder and CEO of Fast Radius (Nasdaq: FSRD), in the news release. "Our board has deemed this filing an appropriate next step."
By July and August, Fast Radius began to explore potential strategic alternatives, including sales and capital markets solutions. The company initially engaged investment bankers Citigroup Global Markets Inc. and Lincoln International before choosing Lincoln, according to court documents.
Fast Radius requested bid proposals be made by Dec. 5.
Fast Radius, founded in 2017, has raised outside funding from a lineup of backers that includes logistics giant United Parcel Service Inc., Drive Capital, Jump Capital, Skydeck and Hyde Park Venture Partners.
Fast Radius earlier this year announced the opening of a new manufacturing technology center on Goose Island, at 1224 N. Hooker St.
Shares in the company fell as far as 45% to less than a dime in trading Tuesday.
