Theranos has given most of its employees a 60-day termination notice and appears to be on the verge of bankruptcy.Pixabay/GERALT
Scandal-plagued Theranos this week gave "all but a small group of employees" a 60-day termination notice, according to CEO Elizabeth Holmes' "confidential" letter to shareholders that Buzzfeed published.
"The most viable option that we have identified to forestall a near-term sale or a potential default under our credit agreement is further investment by one or more of you," Holmes wrote to shareholders. "In light of where we are, this is no easy ask. However, given your support of the company over the years, we wanted to provide this opportunity before we proceed too far down the current path."
The letter suggests that without further funding the company's cash reserves will drop below the $3 million minimum liquidity threshold required by its lender, the Fortress Investment Group.
Naturally, the news triggered a Twitterstorm that has been entertaining, to say the least.