Rallybio announces special cash distribution tied to merger with Avenzo

Rallybio Corp (NASDAQ:RLYB) said Monday its board of directors has declared a special cash distribution to stockholders in connection with its pending merger with Avenzo Therapeutics, Inc. The estimated aggregate distribution is approximately $82.7 million, or about $13.56 per share, based on 6,378,168 shares of common stock and equivalents outstanding as of October 21, 2026. The distribution represents a significant payout for shareholders who have seen the stock surge over 240% in the past year, with shares currently trading at $16.65, near the 52-week high of $17.57. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The distribution will be payable in cash to stockholders and pre-funded warrant holders of record as of November 5, 2026, with the actual payment scheduled for November 13, 2026. The final amount may be higher or lower than the estimate, depending on the company’s net cash position prior to the closing of the merger, according to the statement.

Because the per-share distribution exceeds 25% of Rallybio’s stock price on the declaration date, Nasdaq is expected to set November 6, 2026 as the ex-dividend date. Trades in Rallybio’s common stock during the due bill period, which is expected to run from November 4 to November 6, 2026, will include a due bill for the cash distribution. Buyers of the stock during this period will be entitled to receive the distribution, while sellers will not. Rallybio advised investors to consult with their brokers regarding due bill processing.

Payment of the distribution is contingent on approval of the merger by stockholders at Rallybio’s annual meeting scheduled for November 4, 2026. The closing of the merger is expected to occur on or about November 6, 2026, pending satisfaction or waiver of all conditions under the merger agreement.

The board also set the close of business on November 5, 2026 as the record date for a previously announced distribution of contingent value rights to holders of Rallybio’s common stock in connection with the merger.

This information is based on a press release statement filed with the Securities and Exchange Commission.