Wednesdays are the new Fridays - Follow my twitter for weekly videos about what I’m holding in my portfolio.

What am i HODLING?

A series of short videos and microblogs about what I’m holding in my portfolio.

Remember: This is never investment advice and used for entertainment purposes only

On February 1st, 2021, App Harvest went public at $36 a share after a SPAC merger that was backed by investors such as Fidelity Investments.

The Kentucky based company aims to reorganize through a Chapter 11 bankruptcy and it’s shares continue to trade on the NASDAQ under the ticker symbol APPHQ.

What happened?

This AI integrated indoor farming company become insolvent to is debtors and was forced to default on it’s obligations.

In short… it couldn’t cover it’s liabilities.

This bankruptcy filing is an involuntary corporate action for shareholders and resulted in a ticker change to APPHQ. Much like the trucking company Yellow, after the bankruptcy filing, shares went soaring upward. This doesn’t seem very logical, but I guess that’s how things go now.

How common is this?

This really is not as unusual as you may think. Nearly half of IPOs fail after 5-7 years. It’s a little more surprising that it was within the one to two year range for APPH.

My current position:

I started last week with 6 covered calls I wrote on top of my 600 shares of APPH but was notified on Wednesday, August 2nd, 2023, that they were changed to a new ticker: APPHQ.

Nothing too dramatic here because as the writer of the call, I’ve already secured my premium and now the calls are unlikely to get assigned.

My next steps are really just waiting and likely eventually selling out of my holdings once the calls (probably) expire worthless.

I can no longer buy anymore shares and I'm currently still in a "Position Closing Only" status. I’m a Robinhood user so I think other platforms still offer trading for “penny stocks.” With that, if I did attempt to sell my 600 shares, I would be exposed to unlimited losses and have Short Naked Calls.