ProPhase Labs Inc. (Nasdaq: PRPH), a biotech agency with plans to construct a crypto treasury, introduced on Sep. 23 that its three COVID-19 testing lab items have filed for reorganization beneath Chapter 11 chapter within the U.S. Chapter Courtroom for the District of New Jersey.
The chapter motion is “strictly” restricted to the COVID-19 testing lab items that are collectively owed tens of hundreds of thousands of {dollars} by insurance coverage firms, the assertion learn.
The aim of the chapter submitting is to speed up restoration of funds that ProPhase Labs believes had been lawfully owed for its testing companies.
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“Submitting the lab subsidiaries in chapter court docket was the critically essential subsequent step that we have now all been ready for,” stated Karkus. “The Crown Medical Collections group of attorneys will now instantly method these insurance coverage firms with litigation and the potential for early settlements.”
The attorneys have estimated money collections price $50 million or extra for the corporate internet of all authorized and contingency charges, he added.
On Sep. 9, the agency’s stakeholders authorised all of the proposals, together with one to pursue a possible crypto treasury technique to boost stockholder worth, diversify the company stability sheet, and develop the corporate’s present subsidiaries.
The agency not too long ago stated it’s persevering with to discover the potential for investing in digital property.
“Following our stockholders’ approval of all proxy gadgets on the September 9 Particular Assembly, ProPhase is now positioned to advance its crypto treasury technique… we’re engaged on a crypto treasury technique with a aim that it is going to be structured to be accretive to present shareholders given the numerous underlying worth of the Firm’s property.,” ProPhase Labs CEO and Chairman Ted Karkus stated.
The assertion added that the chapter course of would not “contain or impression” ProPhase Labs and its different subsidiaries and is solely unrelated to the corporate’s exploration of a crypto treasury technique.
The PRPH inventory fell 1% because the market opened on Sep. 23 and was buying and selling at $0.4453 on the time of writing.
This story was initially reported by TheStreet on Sep 23, 2025, the place it first appeared within the Chapter Information & Evaluation part. Add TheStreet as a Most popular Supply by clicking right here.