Fresh Tracks Therapeutics Announces Appointment of Custodian and Planned Distribution
Rhea-AI Summary
Fresh Tracks Therapeutics (FRTX) has announced that the Delaware Court of Chancery has appointed Albert N. Marchio II, the company's CEO and CFO, as custodian following a consent judgment in the case of David R. McAvoy versus Fresh Tracks. The appointment directs the dissolution of the company and the winding up of its affairs.
The company expects to complete the dissolution process and distribute between $0.95 and $0.98 per share to stockholders during the first quarter of 2024. This follows a petition filed by McAvoy on May 20, 2024, requesting Marchio's appointment as custodian. No stockholders objected to the consent judgment by the January 3, 2025 deadline, and the Court granted the appointment on January 15, 2025.
Positive
- Shareholders will receive a distribution of $0.95-$0.98 per share
- Clear timeline for distribution in Q1 2024
- Orderly dissolution process with court oversight
Negative
- Company is being dissolved and will cease operations
- Stock will be delisted following dissolution
News Market Reaction
On the day this news was published, FRTX gained 34.93%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
In the news release, Fresh Tracks Therapeutics Announces Appointment of Custodian and Planned Distribution, issued 27-Jan-2025 by Fresh Tracks Therapeutics, Inc. over PR Newswire, we are advised by the company that the reference to "...first quarter of 2024" at the end of the first paragraph was incorrectly stated and should read "...first quarter of 2025". The complete, corrected release follows:
Fresh Tracks Therapeutics Announces Appointment of Custodian and Planned Distribution
As previously disclosed, on May 20, 2024, Mr. McAvoy filed a petition in the Court asking the Court to appoint Mr. Marchio, then Fresh Tracks' sole director, as the custodian of Fresh Tracks, with the intent that, if so appointed, Mr. Marchio would dissolve Fresh Tracks and distribute a substantial portion of its assets to stockholders. Subsequent to that, Mr. McAvoy and the Company stipulated to a consent judgment whereby Mr. Marchio would be appointed custodian of Fresh Tracks. On December 6, 2024, the Company announced that the Court had set an objection deadline and hearing date of January 3, 2025, and January 17, 2025, respectively. No stockholders objected to the consent judgment on or after January 3, 2025, and on January 15, 2025, the Court granted the proposed consent judgment and appointed Mr. Marchio as the custodian of Fresh Tracks.
Cautionary Note Regarding Forward-Looking Statements
Any statements made in this press release relating to future financial, conditions, plans, prospects, impacts, shifts, trends, progress, or strategies and other such matters, including without limitation, the potential dissolution of Fresh Tracks and the timing and amount of any distribution to stockholders, and similar statements, are forward-looking statements. In addition, when or if used in this press release, the words "may," "could," "should," "might," "seek," "distribute," "dissolve," "announce," "anticipate," "believe," "estimate," "expect," "intend," "plan," "potential," and similar expressions and their variants, as they relate to Fresh Tracks, may identify forward-looking statements. Fresh Tracks cautions that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time, often quickly, and in unanticipated ways. Important factors that may cause actual results to differ materially from the results discussed in the forward-looking statements or historical experience include the timing and amount of any distributions being different than expected; the amounts that will need to be set aside as reserves by Fresh Tracks being higher than anticipated; the possible inadequacy of such reserves to satisfy Fresh Tracks' obligations; potential unknown contingencies or liabilities, and Fresh Tracks' potential inability to favorably resolve them or at all; the amount of proceeds that might be realized from the sale or other disposition of any remaining Fresh Tracks assets; the application of, and any changes in, applicable tax and other laws, regulations, administrative practices, principles and interpretations; the incurrence by Fresh Tracks of expenses relating to its dissolution being different than estimated; the Company's ability to settle, make reasonable provision for or otherwise resolve its liabilities and obligations, including the establishment of an adequate contingency reserve; and the uncertain macroeconomic and political environment. The forward-looking statements represent the estimates of Fresh Tracks as of the date hereof only. Fresh Tracks specifically disclaims any duty or obligation to update forward-looking statements.
Fresh Tracks Therapeutics, Inc.
Investor Contact:
Albert N. Marchio II
Chief Executive Officer and Chief Financial Officer
amarchio@frtx.com
Media Contact:
Julie Fallon
Argot Partners
julie@argotpartners.com
FAQ
What is the expected distribution amount per share for FRTX stockholders?
When will Fresh Tracks Therapeutics (FRTX) complete its dissolution?
Who was appointed as custodian of Fresh Tracks Therapeutics?
What was the outcome of the McAvoy versus Fresh Tracks case?
Were there any objections to the FRTX dissolution plan?
