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Rockley Photonics files for bankruptcy protection

Rockley Photonics files for bankruptcy protection

Business news |
By Peter Clarke



Optoelectronics and medical technology company Rockley Photonics Holdings Ltd. has filed in the US for Chapter 11 protection from its creditors.

The company, founded by optoelectronics entrepreneur Andrew Rickman in 2013, is planning to restructure. Rockley had been in the process of turning itself into a medical technology company that could deliver silicon photonics-based biosensing solutions.

Rockley Photonics Holdings Ltd. is a holding company that was traded on the New York Stock Exchange. It was created when Rockley underwent a reverse takeover by a SPAC – special purpose acquisition company – in March 2021 (see Rockley takes SPAC route to go public as health business).

The company was notified by the NYSE on December 9, 2022, that it had fallen out of compliance with listing standards. And on December 12, 2022, it was announced that Rickman had been replaced as CEO by then CFO Richard Meier. Rickman continues as executive chair of the company with Chad Becker assuming the role of interim CFO.

A plan

In filings with the US Securities Exchange Commission, Rockley noted that the none of the subsidiary companies had filed for relief. It also filed a prepackaged Chapter 11 reorganization plan. The company hopes to eliminate its existing debt and introduce additional capital that will provide approximately $35 million of cash for ongoing operations.

As a result of the Chapter 11, the common stock is expected to be delisted from the NYSE. The company said it does not intend to appeal this move.

The company’s problems partly stem from its SPAC deal, which reportedly failed to raise the amounts of money expected.

But in addition having decided to pivot towards a “clinic-on-wrist” medical technology it has failed to come to market despite showing prototypes in 2021.

In the nine months to September 30, 2022, Rockley made a net loss of $151.6 million on sales revenue of $3.0 million.

Related links and articles:

www.rockleyphotonics.com

News articles:

Rockley CEO puts up own money, helps raise funds

Rockley’s losses triple as it exits datacomm, reduces guidance

Rockley takes SPAC route to go public as health business

Rockley and partners demo 25.6Tbps switch, Ahren invests

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