Third Harmonic Announces Liquidation And Cash Return, Stock Jumps

(RTTNews) - Shares of Third Harmonic Bio, Inc. (THRD) are up over 40% at $5.09 today, following the company's plans to liquidate and dissolve the company, returning capital to shareholders.

The company revealed that it will seek stockholder approval for the dissolution at its Annual Meeting of Stockholders scheduled for June 5, 2025. If the proposal is approved, Third Harmonic Bio plans to file a Certificate of Dissolution with the Secretary of State of Delaware during the third quarter of 2025.

As part of the dissolution process, the company anticipates distributing between approximately $246.6 million and $259.8 million to stockholders, equating to $5.13 to $5.42 per share of common stock. The initial distribution, expected to occur shortly after the filing of the Certificate of Dissolution, is estimated to be in the range of $246.6 million to $255.4 million, or approximately $5.13 and $5.33 per share of common stock.

The company's lead drug candidate is THB335, a potent and highly selective oral small molecule inhibitor of KIT, with initial development efforts focused on chronic spontaneous urticaria. All Phase 2 readiness activities for THB335 are expected to be completed by mid-year 2025.

Commenting on the developments, Natalie Holles, Chief Executive Officer of Third Harmonic Bio, said, "Our management team and board of directors together have completed an efficient review of our strategic alternatives for maximizing the value of our assets and have determined that returning cash to shareholders and selling our assets, including THB335, is the best path forward."

In the last 1 year, THRD has traded in a range of $3.18 to $16.94.