Third Harmonic Bio To Liquidate, To Distribute Up To $255.4 Mln To Shareholders; Stock Climbs

(RTTNews) - Shares of Third Harmonic Bio, Inc. (THRD) were surging around 38 percent in the pre-market activity on the Nasdaq, after the clinical-stage biopharmaceutical company announced Monday that its board of directors has approved a plan to liquidate and dissolute the firm and to distribute remaining cash to stockholders following an orderly wind down of the company's operations.

This includes any proceeds from a sale of its assets and intellectual property, including but not limited to the THB335 program.

The company said the decision was taken following efficient review of its strategic alternatives.

The company estimates that the total distribution will be in the range between approximately $246.6 million and $259.8 million, or approximately $5.13 and $5.42 per share of common stock.

The Company also estimates that the initial distribution will be in the range between approximately $246.6 million and $255.4 million, or approximately $5.13 and $5.33 per share of common stock. The distribution will be following the filing of the Certificate of Dissolution, currently expected in the third quarter of 2025.

The Board intends to seek stockholder approval for dissolution of the company at the Annual Meeting of Stockholders on June 5. The sale of the company's assets, including THB335, will be initiated pending stockholder approval.

As per previous financial and operational guidance, Third Harmonic Bio will complete all Phase 2 readiness activities for THB335 by mid-year to maximize the value of the program that may be obtained for stockholders in the asset sale process. If its stockholders authorize the dissolution, the company currently plans to file a Certificate of Dissolution with the Secretary of the State of Delaware in the third quarter of 2025.

The firm will also delist its shares of common stock from The Nasdaq Global Select Market.

The company will establish a reserve, which will be used to pay all expenses, including operating expenses up until the filing of the Certificate of Dissolution.

Third Harmonic Bio currently expects that its existing capital resources together 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's Board will have the right to abandon and terminate the Plan of Dissolution at any time before it becomes effective, without any action by stockholders.

In pre-market activity on the Nasdaq, Third Harmonic Bio shares were trading at $5.03, up 38.19 percent.