Molecular Templates Inc (NASDAQ: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 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 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.