Molecular Templates Inc ( MTEM ) shares are trading lower by 77% to $0.35 during Monday’s session after the company announced it approved the liquidation and wind-up of the company.

What Happened: On October 11, Molecular Templates ( MTEM ) approved a plan to liquidate and wind up the company, pending stockholder approval, due to a lack of viable strategic alternatives. The company says it had been exploring options for over a year but found no suitable outcomes.

The board is also seeking stockholder approval for a plan of distribution, although it does not expect that shareholders will receive value for their shares upon dissolution.

Molecular Templates ( MTEM ) will reduce its workforce, retaining only key management for winding up the business and exploring remaining strategic alternatives. The company also plans to wind down its Phase 1 clinical trials but will continue discussions with the FDA for one of its drugs, MT-0169.

Despite ongoing efforts to maximize asset value, there is no assurance of a positive outcome or any shareholder distribution. The workforce reduction is expected to be completed in October 2024, with minimal associated costs.

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According to data from Benzinga Pro, MTEM has a 52-week high of $6.69 and a 52-week low of $0.30.