Talis Biomedical Corp (NASDAQ:TLIS) shares are trading lower by 49% to $4.58 during Wednesday's session. The company announced board restructuring, appointed new directors and updated investors on potential bankruptcy proceedings.

What Happened?

The company says on July 31, Talis Biomedical Corporation's board, guided by the Nominating and Corporate Governance Committee, began restructuring its composition. Heinrich Dreismann resigned effective August 1, and Patricia Ferrari and John T. Young, Jr. were elected to the board. Young's term runs until the 2025 annual meeting, and Ferrari's until the 2024 annual meeting. The board now has eight members.

Ferrari and Young were also appointed to a Special Restructuring Committee to manage ongoing securities class action litigation and potential bankruptcy proceedings. Both have extensive experience in bankruptcy and liquidation advisory. The company says Ferrari has held significant roles at Cano Health and MBIA Inc., while Young is the managing partner of Neinda Advisors LLC.

Ferrari and Young will each receive a $35,000 monthly retainer, guaranteed for up to six months or until a liquidation plan is approved. Young will also receive an annual $10,000 retainer as Chair of the Audit Committee. Their appointments and indemnification agreements follow Nasdaq's independence standards. Dreismann's resignation was amicable, and the company thanked him for his service.

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According to data from Benzinga Pro, TLIS has a 52-week high of $9.60 and a 52-week low of $4.35.