 "Third Harmonic Bio Announces Liquidation Plan: Stock Skyrockets 39% Pre-Market, But Retail’s Shattered")
synopsis
The company plans to file a certification of dissolution with the Secretary of the State of Delaware in the third quarter of 2025, provided that stockholders authorize the decision at its annual meeting of stockholders on June 5.
Shares of Third Harmonic Bio, Inc. (THRD) drew investor attention on Monday after the company announced that its board of directors has approved a plan for the liquidation and dissolution of the firm and the distribution of remaining cash to stockholders.
The company plans to file a certification of dissolution with the Secretary of the State of Delaware in the third quarter of 2025, provided that stockholders authorize the decision at their annual meeting on June 5.
The company will subsequently delist its shares of common stock from Nasdaq.
Third Harmonic Bio CEO said that after reviewing strategic alternatives, the management team and board of directors determined that returning cash to shareholders and selling its assets is the “best path forward.”
The company expects that its existing capital resources, coupled with the anticipated net proceeds from the sale of certain clinical assets, will enable it to meet its remaining liabilities and obligations with sufficient reserves.
The company estimates that the initial distribution will be between approximately $246.6 million and $255.4 million, or approximately $5.13 and $5.33 per share of common stock. The amount will be distributed after the company files for dissolution in the third quarter.
It added that the estimates do not include any cash that may become available for distribution following sales of the company’s assets.
The company said that it will complete all Phase 2 readiness activities for its lead product candidate THB335, aimed at treating chronic spontaneous urticaria, by mid-year to maximize the program's value, which will be sold as part of the dissolution plan.
Following the announcement, shares of the company rocketed over 39% in Monday’s pre-market session.
On Stocktwits, retail sentiment around Third Harmonic Bio fell from ‘neutral’ to ‘extremely bearish’ over the past 24 hours while message volume rose from ‘extremely low’ to ‘extremely high.’
THRD stock fell by about 67% year-to-date and by 69% over the past 12 months.
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