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Shares of iRobot Corp. (NASDAQ:IRBT) lost over a third of their value on Monday, after the Roomba maker said the last remaining potential buyer had dropped out of sale negotiations, and its financial conditions remained strained.
The buyer offered a price per share that was “significantly lower” than its stock price over recent months, iRobot said in a regulatory filing. “As such, there remains no assurance that our review of strategic alternatives will result in any transaction or outcome.”
Since Amazon.com Inc. (NASDAQ:AMZN) abandoned its planned $1.7 billion acquisition of the company in January 2024, citing regulatory hurdles, iRobot’s future has been uncertain.
The company issued dire financial results for fiscal year 2024 as it struggles to generate cash and pay off debts, and warned in March that there’s “substantial doubt” about its ability to stay in business — a mandatory legal disclosure for any company approaching the edge of bankruptcy.
iRobot also took a $200 million loan in July 2023 from the Carlyle Group, as it grappled with stiff competition from cheaper Chinese models and struggled to diversify its product line.
The company said in the filing that it extended the waiver period for certain financial obligations until Dec. 1 — its sixth amendment to the credit agreement.
If lenders don’t provide additional funding, or if it can't secure other sources of capital in the near term, iRobot added that it “may be forced to significantly curtail or cease operations and would likely see bankruptcy protection.”
On Monday, iRobot’s shares dropped as much as 36% and closed down at $3.69. They had touched an all-time high of $161.6 in January 2021, valuing the company at more than $3.5 billion, thanks to the pandemic-fuelled boom in sales.
Now, its market cap stands at just about $117 million, according to data from Benzinga Pro.
Founded in 1990, the company is best known to most people for building the world’s first successful autonomous home vacuum cleaner, the Roomba, which was initially released in 2002 and has since sold more than 40 million units.
But so far this year, iRobot’s stock is down about 53% and about 78% since Amazon abandoned its buyout plans.
Benzinga’s Edge Rankings also indicate poor scores and trends across parameters. For much such detail on other stocks, click here.
Image via Shutterstock
