Evelo Biosciences announces dissolution

Nov. 22, 2023

Evelo Biosciences revealed this week that it would be closing its doors and dissolving its assets. 

In an SEC filing, the Massachusetts-based startup, which was founded by Flagship Pioneering in 2015, said that the board has approved the plan of dissolution, deeming it in the best interests of the company and its stockholders. According to Evelo, this decision follows exhaustive efforts to explore funding alternatives, with the board asserting that dissolution is the most viable option for creditor recovery and potential stakeholder payments.

Simba Gill, Evelo president, CEO and principal executive officer, along with Marella Thorell, CFO, secretary and treasurer, will cease their employment with the company on December 1, 2023.

To fill the leadership void, the board appointed Craig R. Jalbert as the new president, corporate secretary and principal executive officer, effective November 21, 2023. Jalbert will also serve as the sole member of the Board, reducing its size from seven to one director in Class II. His term extends until the election and qualification of his successor.

In connection with the dissolution, the company outlined a plan to compensate Jalbert, who has a background in distressed businesses, with $10,000 per month until the filing of a Certificate of Dissolution, and $50,000 per year for three years thereafter.

To assist in the process, the company engaged Rock Creek Advisors for strategic alternatives and monetizing assets. If approved, Nasdaq is expected to delist Evelo's securities, with subsequent termination of SEC registration under the Securities Exchange Act of 1934.