A little over a year after defining a SPAC merger to become listed on the NASDAQ, manufacturing services provider Fast Radius, Inc. (Nasdaq: FSRD) filed voluntary Chapter 11 petitions on November 7, 2022. The petitions Add Newwere approved by the United States Bankruptcy Court for the District of Delaware enabling the company to continue operations in the normal course including maintaining employee payroll and health benefits, paying vendors for all post-petition goods and services, continuing all customer programs, and other programs that are essential to continuing the business without disruptions.
While the company will remain active and will also be looking for a bidder, it is undeniable that the current state of things comes as a blow to its aspirations and visions to “build the first $100+ billion cloud manufacturing and digital supply chain company, presenting a compelling investment opportunity in Industry 4.0 and next-generation, sustainable infrastructure,” as declared by the company at the time of the SPAC merger announcement.
Fast Radius operates out of four locations in Chicago, Atlanta, Louisville and Singapore. Besides offering traditional/subtractive CNC, injection molding and urethane casting services, Fast Radius is also a major provider of AM capabilities leveraging polymer AM technologies such as high-speed photopolymerization (DLS), thermal powder bed fusion (MJF), extrusion (FDM), PolyJet and stereolithography (SLA).
“We are pleased to have received approval of the first-day motions. This allows us to continue providing our Cloud Manufacturing Platform to our customers without interruption while maintaining our relationships with our vendors and business partners,” said Lou Rassey, Co-Founder and CEO of Fast Radius. “We thank our customers for their loyalty and our employees for their hard world as we manage through the current environment.”
On November 8th Fast Radius launched an in-court process to effectuate one or more strategic transactions and has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the District of Delaware.
The Company has requested that the court establish specific sale and marketing procedures, which include a proposed bid deadline of December 5, 2022. The Company is in active discussions with one or more potential partners and continues to explore and evaluate strategic alternatives.
“Fast Radius has invested over $200 million creating a first-of-its-kind Cloud Manufacturing Platform. Like cloud computing, we provide a platform of software tools and manufacturing solutions to help engineers design and make commercial-grade parts for a $360 billion market. We have served over 2,000 manufacturing customers and 23,000 software users since 2020,” said Lou Rassey, CEO and Co-Founder of Fast Radius. “We thank our suppliers and partners for their continued support through this process. We also thank our team members for their continued commitment and dedication to serving our customers.”
Ultimately, Fast Radius will continue to operate its business as a “debtor-in-possession” under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the U.S. Bankruptcy Code. The Company has filed customary motions requesting that the court authorize the Company’s ability to use cash on hand and operating cash flows to support its continued operation throughout this process, including payment of employee wages and benefits without interruption. The Company intends to pay suppliers and vendors in full under normal terms for goods and services provided on or after the filing date. Fast Radius expects to operate without interruption, including providing customers with the same high-quality products and services they expect and continued partnerships with its valued suppliers.
“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,” shared Rassey. “Our Board has deemed this filing an appropriate next step. We continue to have conviction on the importance of innovation in manufacturing and the potential for our Cloud Manufacturing Platform.”
Court filings and other information related to the proceedings are available on a separate website administered by the Company’s noticing agent, Stretto, or by calling Stretto representatives toll-free at 1-877-361-4291 or 1-714-384-7055 for calls originating outside of the U.S.