ASLAN Pharmaceuticals Ltd ( ASLN ) shares are trading lower by 38.7% to $0.68 during Wednesday’s session after the company announced that its Singapore-incorporated, sole operating subsidiary has filed for voluntary liquidation.

The company says this decision was made following a thorough review of ASLAN SG’s financial situation and strategic options. As a result, all employees of ASLAN SG and its subsidiary in the USA have been terminated.

The directors of ASLAN SG resolved that the subsidiary could not continue its business due to its liabilities. Luke Anthony Furler and Tan Kim Han of Quantuma (Singapore) Pte Limited were appointed as provisional liquidators to manage the winding up of ASLAN SG’s affairs.

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They will seek strategic alternatives for ASLAN’s development programs and assets, settle obligations, and distribute remaining proceeds to creditors and shareholders according to Singaporean law.

The parent company, ASLAN Pharmaceuticals ( ASLN ), also resolved to apply for liquidation under Cayman law due to its liabilities. Previously, the company received a delisting notice from the Nasdaq Stock Market for failing to meet listing requirements and will move its trading to the over-the-counter market.

ASLN has a 52-week high of $25.44 and a 52-week low of $0.48.