Applied Therapeutics shares fall 14.15% premarket as tender offer extension and promissory note risks drive investor caution.

Applied Therapeutics (APLT) fell 14.15% in premarket trading following the company’s urgent call for shareholders to tender shares ahead of Cycle Group’s extended tender offer deadline. The offer, priced at $0.088 per share plus a non-tradeable contingent value right, remains conditional on securing a majority of shares. The board highlighted risks of liquidation, an $8.5 million promissory note with 24% interest becoming due, and a potential share-price decline if the offer fails. Recent updates indicated only ~44.3% of shares had been tendered as of January 28, raising concerns about the deal’s viability. The stock’s sharp drop reflects investor anxiety over the tender offer’s uncertain outcome and the company’s precarious financial position, including a high-risk Altman Z-Score and negative operating margins. The premarket sell-off underscores market skepticism about the likelihood of the transaction closing and the company’s ability to avoid insolvency without the merger.