Evelo Biosciences calls it a day

Evelo Biosciences (Nasdaq: EVLO) revealed in a stock exchange filing that, in the best interests of the company and its stockholders, the business will be dissolved. The news sent the firm’s shares up 10.5% to $0.65 by late-morning trading.

This will be effected in accordance with the General Corporation Law of the State of Delaware pursuant to a Plan of Dissolution; approved the dissolution; and approved seeking stockholder approval to proceed with the dissolution pursuant to Delaware law at a special meeting of stockholders to be held as soon as reasonably practicable following the effective date.

After seeking potential funding sources and other ways to continue to operate Evelo’s business, Evelo has not found a viable alternative to the dissolution. The board believes that the dissolution presents the best opportunity for recovery for the company’s creditors and may also provide an opportunity for future payments to its other stakeholders, including Evelo’s stockholders.