Histogen Inc. (HSTO) said its board approved the liquidation and dissolution of the company pursuant to the Plan of Dissolution. The Plan of Dissolution contemplates an orderly wind down of Histogen's business and operations. The company discontinued all clinical development programs and reduced its workforce, including the anticipated termination of most employees by the end of September.
HSTO closed Tuesday regular trading at $0.39 down $0.26 or 40.42%. But in the after-hours trade, the stock gained $0.13 or 33.02%.
"The Board of Directors and management devoted substantial time and effort in identifying and pursuing various opportunities, but we were unable to complete a transaction that would allow us the potential to enhance stockholder value," said Steven Mento President and Chief Executive Officer of Histogen.
Histogen has reduced its workforce, including the termination of all employees except for two remaining employees, effective as of September 30, 2023. This includes the termination of employment of all officers except for Susan Knudson, who effective as of October 1, 2023 will serve in addition to her role as Chief Financial Officer, Secretary and principal financial officer, as the company's President, Chief Executive Officer and principal executive officer.
The company said it continues to explore certain strategic options that may be available for the potential sale of any of its pipeline assets. In the event that the company is successful in selling any assets of the company, the proceeds from any such sale would be distributed to stockholders in accordance with the Plan of Dissolution.
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