Nasdaq to boot Fresh Tracks as management urges shareholder support for dissolution

BOULDER — Embattled drug maker Fresh Tracks Therapeutics Inc. (Nasdaq: FRTX) will no longer have its stock traded on the Nasdaq exchange as of Tuesday and will immediately begin trading on the over-the-counter market. 

The company, which could soon be dissolved and liquidated, has fended off delisting in the past, regaining compliance when its stock price dropped below the minimum threshold of $1 for more than 30 consecutive days. But Fresh Tracks officials said Monday that the company has withdrawn its appeal.

Fresh Tracks, which laid off nearly all its workers this fall, has been in cost-cutting mode for months as management urges shareholders to approve its dissolution plan.

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Last year the drug developer rebranded from Brickell Biotech and sold off rights to its excessive-sweating drug to Botanix Pharmaceuticals Ltd. The company, which has seen its stock price tank in recent years, then began exploring the possibility of a merger or other strategic options for boosting shareholder value, elevated a new CEO and paused research and development.

The company contacted about 125 potential merger partners and investors, resulting in four “unsuccessful attempts” to consummate a deal, due, Fresh Tracks said, to “the potential acquirer’s inability to secure its own necessary financing and/or inability to offer adequate value.”

Fresh Tracks’ board of directors moved to dissolve the company in September, but so far company leadership has failed to whip the necessary votes from its shareholders.

Management estimates that dissolution would result in $5 million to $7 million returned to those shareholders. 

“Fresh Tracks intends to reconvene its special meeting of stockholders on Dec. 27, 2023,” the company said Monday. “If Fresh Tracks’ stockholders do not approve (the proposed liquidation and dissolution plan) … Fresh Tracks intends to seek judicial dissolution, which is likely to be costly and time-consuming and would reduce the amount of cash distributable to Fresh Tracks’ stockholders associated with the company’s dissolution.”