Zynex stock tumbles as company explores strategic alternatives

Investing.com -- Zynex Inc (NASDAQ:ZYXI) stock plunged 26.7% on Friday after the medical technology company announced it has engaged financial advisors to evaluate strategic alternatives, including potential capital raising and restructuring strategies.

The Colorado-based manufacturer of non-invasive medical devices for pain management and rehabilitation has hired Province, LLC, an international financial advisory firm, to assist with exploring various options for the company’s future. Additionally, Zynex formed a Special Committee of independent directors to oversee the assessment of these strategic alternatives.

The company also appointed Paul Aronzon to its Board of Directors. Aronzon, who brings over 40 years of experience in corporate restructurings and reorganizations, will serve as Chair of the newly formed Special Committee. Current director Bret Wise will also serve on the committee.

"We are taking decisive steps to ensure Zynex is well-positioned going forward," said Steven Dyson, Chief Executive Officer. "The engagement of Province and the formation of the Special Committee reflect our commitment to exploring all avenues to create a new future for Zynex."

The sharp stock decline suggests investors may be concerned about the company’s financial position and future prospects. Zynex noted that it has not yet identified a specific strategic transaction, and there is no guarantee that any transaction will result from the evaluation process.

The company did not provide details on the timing or potential terms of any transaction that might emerge from this strategic review.

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