Aditxt faces Nasdaq delisting over share price rule

Published 09/10/2024, 21:36
Aditxt faces Nasdaq delisting over share price rule

Aditxt, Inc., a biopharmaceutical company, has been notified by The Nasdaq Stock Market that it is not meeting the minimum bid price requirement, putting its stock at risk of being delisted. The notification, received on Wednesday, October 3, 2024, indicated that the company's common stock had closed below the required minimum bid price of $1.00 per share for 30 consecutive business days.

The Nasdaq's Listing Rule 5550(a)(2) mandates that listed securities must maintain this minimum bid price, and failure to do so triggers a notice of non-compliance. However, the notice does not immediately affect the listing of Aditxt's common stock, which continues to be traded on The Nasdaq Capital Market under the ticker symbol "ADTX."

Aditxt has been provided with a 180-day period, until April 1, 2025, to regain compliance. To achieve this, the company's common stock must maintain a closing bid price of at least $1.00 per share for at least 10 consecutive business days. If the company is unable to meet this requirement within the given timeframe, it may be granted an additional 180 days, provided it meets all other continued listing criteria and submits a written notice of its intent to resolve the deficiency.

The company had previously attempted to address this issue by implementing a reverse stock split, which took effect at the close of business on October 1, 2024. The reverse split was intended to elevate the company's share price to comply with the Nasdaq's minimum bid price rule. The company's stock began trading on a split-adjusted basis on the following day, October 2, 2024.

Should Aditxt fail to regain compliance within the allotted grace period or the extended timeframe, Nasdaq will issue a delisting determination, after which Aditxt would have the opportunity to appeal the decision before a Hearings Panel.

This situation arises as Aditxt, known for its focus on pharmaceutical preparations, navigates the challenges of maintaining its standing in the stock market. The company, incorporated in Delaware and headquartered in Mountain View, California, has been publicly traded on the Nasdaq since its IPO. The information regarding Aditxt's compliance status is based on a press release statement.

In other recent news, Aditxt, Inc. is making significant strides in its financial operations and strategic initiatives. The health innovation company announced plans to acquire Evofem Biosciences (OTC:EVFM), Inc. and Appili Therapeutics, Inc., reporting revenues of $7.8 million and $6.0 million respectively, as part of its expansion into women's health and public health sectors.

The proposed acquisitions are contingent on several conditions, including approvals from target shareholders and the raising of sufficient capital. Aditxt has also filed a shelf registration statement with the SEC to maintain its Nasdaq listing and streamline its balance sheet.

Additionally, Aditxt issued a senior note to an accredited investor for a purchase price of $600,000. The company also invested in Evofem Biosciences, purchasing 260 shares of Series F-1 Convertible Preferred Stock for $260,000. Aditxt's subsidiary, Pearsanta, Inc., has signed a Market Development Collaboration Agreement with Evofem to develop a go-to-market plan for Pearsanta's Mitomic Endometriosis Test.

Moreover, Pearsanta has applied for a $2 million grant from the Prostate Cancer Research Program to support the development of early detection and management strategies for prostate cancer. The subsidiary also appointed Christopher Mitton as its new president to advance its strategic commercial rollout and precision health initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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