Codiak BioSciences (NASDAQ:CDAK) shares are trading lower on Monday after the company voluntarily filed for protection under Chapter 11 bankruptcy.

The company began a marketing process ahead of the Chapter 11 filing to determine the level of market interest and is in ongoing discussions with several parties. The company expects to consummate a sale of the entire business or its core assets as soon as reasonably practicable.

"The board and management team have thoroughly assessed all of our strategic options and believe that this structured process represents the best possible solution for Codiak, taking into account our financial needs and the stage of our clinical and research programs," said Douglas E. Williams, Ph.D., President and CEO of Codiak.

In connection with the filing, Codiak has appointed Paul Huygens, Principal at Province, LLC, as Chief Restructuring Officer. Paul Huygens will oversee the business and its restructuring process, working to execute the company's business strategy and conduct a value-maximizing sale process.

Codiak is a clinical-stage biopharmaceutical company pioneering the development of exosome-based therapeutics, a new class of medicines with the potential to transform the treatment of a wide spectrum of diseases with high unmet medical need.

CDAK Price Action: Codiak has a 52-week high of $7.12 and a 52-week low of $0.30.

Codiak shares are down 53.5% at $0.20 at the time of writing, according to Benzinga Pro.

Why Codiak BioSciences Shares Are Trading Lower Today