Timber Pharmaceuticals (NYSE:TMBR) shockingly filed for Chapter 11 bankruptcy protection Friday afternoon, as stunned shareholders rejected a planned merger with LEO Pharma.

The dermatology drug developer sought Chapter 11 protection in a Delaware court, unveiling that its assets were valued at a mere $10M while shouldering liabilities of at least the same, Bloomberg reported post market closure.

Timber divulged in an SEC filing made early Friday afternoon that the proposed merger failed to garner a majority of shareholder votes during a special shareholders meeting. Timber’s shares, which were trading 17% higher, were abruptly halted for pending news around 12:40 p.m. ET.

Analysts alarmed earlier this week that Timber might plunge into bankruptcy if the deal was vetoed, highlighting its lack of funds to repay the bridge loan extended by LEO before the merger.

LEO had tabled a $14M offer for Timber, coupled with a potential value right of up to $22M. Fulfillment of the CVR was subject to specific deductions linked to 50% repayment of a $3M bridge loan from LEO.

The deal, which was announced in August, failed to secure adequate shareholder support at a special meeting convened in October.