Apparently you need to do a little more DD. The liquidation, if approved by the shareholders, effectively dissolves the company and distributes the liquidated assets on among the common shares.

This is not only legit, it is in the best interests of the shareholders to preserve value. The company has no ongoing business interest, no R&D, no revenues, only expenses. The one outstanding wildcard is the value of a deal by Celtic for Xerecept (as NTII would receive a share of that transaction) - but this is a passive opportunity and the cash could just as easily be distributed to the shareholders.

This company is likely to be closed within a few months.