BowFlex Inc. assigned BFXXQ symbol on OTC Market
- None.
- The delisting from the NYSE due to a Chapter 11 bankruptcy filing poses significant risks for shareholders, including uncertainty about the stock's value and trading on the OTC market.
Insights
The transition of BowFlex Inc. from the NYSE to the OTC market is a significant financial event, indicating a substantial shift in the company's market standing. The assignment of a new stock symbol, 'BFXXQ', typically indicates a company in distress and in this case, it follows the initiation of Chapter 11 bankruptcy proceedings. Investors should be aware that such a move often leads to a decrease in liquidity and visibility of the stock, potentially leading to greater volatility and reduced investor confidence.
Furthermore, the company's statement about the lack of obligation to maintain a market in the common stock is a clear signal of risk to stockholders. The uncertainty surrounding the ultimate effect of the bankruptcy proceedings on the stock's value is a critical consideration. In some cases, common stockholders may end up with little to no return on their investment post-bankruptcy, depending on the company's ability to restructure its debts and the priority of claims.
Moving to the OTC market often results in reduced regulatory requirements and lower costs for the company but also comes with a decrease in the stock's prominence among investors. The OTC market is less regulated than major exchanges, which can lead to less stringent reporting standards and investor scrutiny. This could impact the company's ability to raise capital in the future.
It's also important to note that the lack of broker quotes and an established market can deter investment, as it implies a lack of interest and support from financial institutions. This can further affect the company's stock price and trading volume. Stakeholders should closely monitor the market response to BowFlex's OTC listing to gauge the market's perception of the company's financial health and future prospects.
Chapter 11 proceedings allow a company to reorganize and attempt to become profitable again while temporarily holding off creditors. However, the implications for common stockholders are often negative, as they are last in line during asset liquidation, behind secured creditors, bondholders and preferred stockholders. The statement from BowFlex highlights the lack of assurance regarding the trading of its common stock, which is a legal disclosure meant to temper stockholder expectations.
Investors should understand that during bankruptcy, common stock can become highly speculative. The company's warning about the potential inability of stockholders to sell or transfer their stock is a legal precaution to mitigate future disputes and manage investor expectations. This serves as a reminder of the inherent risks associated with investing in stocks, especially those undergoing financial restructuring.
BowFlex previously announced the NYSE determination that the Company is no longer suitable for listing after the Company disclosed that the Company and certain of its subsidiaries have voluntarily initiated a Chapter 11 proceeding in
The Company is under no obligation to develop or maintain a market in the common stock. The Company cannot provide assurance that its common stock will trade on the OTC Market, that brokers will provide public quotes of the Company's common stock, or that a market for the Company's common stock will develop or be maintained. Holders of common stock may not be able to sell or otherwise transfer such common stock.
Investors can locate current market information and real-time quotes online at www.otcmarkets.com.
About BowFlex Inc.
BowFlex Inc. is a global leader in digitally connected home fitness solutions. The Company’s brand family includes BowFlex®, Schwinn®, and JRNY®, its digital fitness platform. With a broad selection of exercise bikes, cardio equipment, and strength training products, we empower healthier living through individualized connected fitness experiences and in doing so, envisions building a healthier world, one person at a time.
Headquartered in
Forward-Looking Statements
This press release includes forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, express or implied forward-looking statements relating to the Company’s statements regarding the process and potential outcomes of the Company’s Chapter 11 Cases, the Company’s expectations regarding the purchase agreement and related bidding procedures and the Bankruptcy Court’s approval thereof, and the Company’s ability to continue to operate as usual during the Chapter 11 Cases. You are cautioned that such statements are not guarantees of future performance and that our actual results may differ materially from those set forth in the forward-looking statements. All of these forward-looking statements are subject to risks and uncertainties that may change at any time. Factors that could cause the Company’s actual expectations to differ materially from these forward-looking statements also include: weaker than expected demand for new or existing products; our ability to timely acquire inventory that meets our quality control standards from sole source foreign manufacturers at acceptable costs; risks associated with current and potential delays, work stoppages, or supply chain disruptions, including shipping delays due to the severe shortage of shipping containers; an inability to pass along or otherwise mitigate the impact of raw material price increases and other cost pressures, including unfavorable currency exchange rates and increased shipping costs; experiencing delays and/or greater than anticipated costs in connection with launch of new products, entry into new markets, or strategic initiatives; our ability to hire and retain key management personnel; changes in consumer fitness trends; changes in the media consumption habits of our target consumers or the effectiveness of our media advertising; a decline in consumer spending due to unfavorable economic conditions; risks related to the impact on our business of the COVID-19 pandemic or similar public health crises; softness in the retail marketplace; availability and timing of capital for financing our strategic initiatives, including being able to raise capital on favorable terms or at all; changes in the financial markets, including changes in credit markets and interest rates that affect our ability to access those markets on favorable terms and the impact of any future impairment. Additional assumptions, risks and uncertainties that could cause actual results to differ materially from those contemplated in these forward-looking statements are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission, including the “Risk Factors” set forth in our Annual Report on Form 10-K, as supplemented by our quarterly reports on Form 10-Q. Such filings are available on our website or at www.sec.gov. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240313093143/en/
Investor Relations:
John Mills
ICR, LLC
646-277-1254
John.Mills@icrinc.com
BowFlex Inc.:
Hanna Decker
BowFlex Inc.
hdecker@bowflex.com
Source: BowFlex Inc.
FAQ
Why was BowFlex delisted from the NYSE?
What is the new symbol assigned to BowFlex's Common Stock?
What is the potential impact of BowFlex's Chapter 11 proceeding on stockholders?
Where can investors find current market information and real-time quotes for BowFlex's common stock?
