By Chris Wack

Surgalign Holdings shares were down 76% to 30 cents, a 52-week low, after the company said it is selling substantially all of its U.S. hardware and biomaterials assets and the equity interests to Xtant Medical Holdings for $5 million.

The company said the sale will be effectuated through the chapter 11 proceedings begun by it and certain of its subsidiaries, who elected to voluntary petitions under chapter 11 of the bankruptcy code in U.S. bankruptcy court for the southern district of Texas.

As part of the chapter 11 proceedings, Surgalign also filed a motion seeking authorization to pursue an auction and sale process to which Xtant will be designated as the stalking horse bidder.

The company has filed a series of motions with the bankruptcy court seeking to ensure the continuation of normal operations during this process. The company believes that it has sufficient liquidity to conduct its businesses in an uninterrupted manner and fund the chapter 11 proceedings, including the sale of its assets.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

June 20, 2023 10:14 ET (14:14 GMT)

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