Third Harmonic Bio (THRD) said Monday its board has approved a plan for the company's liquidation and dissolution and will seek stockholder approval for the plan at its annual meeting on June 5.

Under the plan, the company will wind down its operations and distribute its remaining cash to stockholders. The initial distribution will be between about $246.6 million and $255.4 million, or about $5.13 and $5.33 per share, and is expected to follow the filing of the certificate of dissolution, expected in Q3, the company said.

Third Harmonics said it 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 estimates that the total distribution will be between $246.6 million and $259.8 million.

The estimates do not include cash that may become available for distribution from the proceeds from any sales of its remaining assets and intellectual property, including the sale of its lead product candidate THB335, the company said.

Third Harmonic shares were up more than 37% in recent premarket trading.

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