iRobot (IRBT) announced it entered a Restructuring Support Agreement with its secured lender, Picea, which will acquire 100% of the company’s equity through a court-supervised pre-packaged Chapter 11 process following years of weakening financials.
- The transaction is expected to result in iRobot delisting from Nasdaq and becoming a private company wholly owned by Picea.
- Management explicitly warned investors about the likelihood of the cancellation of the Company's common stock during the Chapter 11 process.
- IRBT shares collapsed from $5.00 on December 11 to $0.47 on December 19, though they saw a slight after-hours bounce to $0.50 (+7.18%).