Rallybio declares $82.7 million special cash distribution ahead of Avenzo merger

Rallybio Corporation (NASDAQ: RLYB) declared a special cash distribution of an estimated $82.7 million, or $13.56 per share, to stockholders and pre-funded warrant holders in connection with its pending merger with Avenzo Therapeutics, Inc. The company’s board of directors announced the distribution on October 25, 2026, as part of the process to close the merger agreement signed on May 31, 2026.

The estimated payout is based on Rallybio’s good faith calculation that its net cash will exceed zero prior to the merger closing. The per-share figure relies on 6,378,168 shares of common stock and common stock equivalents outstanding as of October 21, 2026. The actual total distribution amount will be deposited with the company’s transfer agent on November 5, 2026, and is scheduled for further distribution on November 13, 2026. Rallybio noted that the final amount may be higher or lower than the estimated figure.

Because the per-share distribution exceeds 25% of the stock price on the declaration date, the payment is subject to an ex-dividend date aligned with the merger closing. Nasdaq is expected to set November 6, 2026 as the ex-dividend date. To receive the cash distribution, investors must hold the securities through and including November 6, 2026.

Nasdaq procedures will apply due bills to trades of Rallybio common stock entered during the due bill period, which is expected to run from November 4, 2026, to November 6, 2026. During this period, sellers are obligated to deliver the cash distribution to buyers. Consequently, buyers are entitled to the distribution even if the trade settles after the due bill period ends, while sellers are not entitled to it if the trade settles after that date. The company stated it has no obligations regarding the amount or processing of these due bills.

Payment of the cash distribution is conditioned upon receiving the required company stockholder vote at Rallybio’s annual meeting, scheduled for 10:00 a.m. Eastern Time on November 4, 2026. The board also fixed the close of business on the record date as the record date for a previously announced distribution of contingent value rights. The merger closing is expected to occur on or about November 6, 2026, assuming stockholder approval and the satisfaction or waiver of all conditions under the merger agreement.