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Akari Therapeutics (NASDAQ:AKTX) Plc, a pharmaceutical company, is at risk of being delisted from The Nasdaq Capital Market due to non-compliance with the minimum stockholders' equity requirement. The company received a delisting determination letter from Nasdaq on Monday, October 1, 2024, after failing to meet the conditions of an extension granted to regain compliance.
The Nasdaq's notice indicated that Akari Therapeutics does not satisfy the minimum $2.5 million stockholders' equity threshold. The company had initially been given 45 days from April 5, 2024, to submit a plan to address the deficit and later received an extension until September 30, 2024. Despite these efforts, Akari has not been able to rectify the shortfall.
Akari Therapeutics plans to appeal the delisting decision by requesting a hearing before a Nasdaq Hearing Panel, which will delay any suspension or delisting actions until the hearing process is concluded. The company is hopeful that its pending merger with Peak Bio, Inc., once completed, will allow it to regain compliance with the stockholders' equity requirement.
However, there is no guarantee that the company will achieve compliance, that the Nasdaq panel will provide an additional extension, or that the merger with Peak Bio will be successful. The company's future on the Nasdaq exchange remains uncertain, and the outcome of the appeal and merger is awaited with interest.
In other recent news, Akari Therapeutics has made significant strides in its operations. The company has appointed Rob Bazemore, a seasoned professional with over three decades of experience in the life sciences sector, to its Board of Directors. Bazemore's rich background in medical affairs, sales, and marketing is anticipated to add strategic value to the company.
In addition to the new appointment, Akari Therapeutics is in the process of merging with Peak Bio, Inc., a clinical-stage biopharmaceutical company. This all-stock transaction, expected to close by the third quarter, aims to amalgamate Akari's novel therapies with Peak's antibody-drug-conjugate platform in oncology.
The company has also recently concluded its 2024 Annual General Meeting, which resulted in the election of new directors and the appointment of BDO USA, P.C. and Haysmacintyre LLP as the company's auditors for the year ending December 31, 2024. In another development, Akari Therapeutics successfully raised approximately $7.6 million in a private placement financing round, indicating investor confidence in the company's direction.
InvestingPro Insights
Recent InvestingPro data sheds light on Akari Therapeutics' financial position, providing context to its Nasdaq compliance challenges. The company's market capitalization stands at a modest $35.86 million, reflecting its current struggles. InvestingPro Tips indicate that Akari holds more cash than debt on its balance sheet, which could be a positive factor in its appeal to Nasdaq. However, this is offset by the fact that short-term obligations exceed liquid assets, potentially complicating its financial stability.
The company's profitability remains a concern, with InvestingPro Tips noting that Akari is not profitable over the last twelve months and analysts do not anticipate profitability this year. This aligns with the reported operating income of -$18.1 million for the last twelve months as of Q2 2024, underscoring the financial hurdles the company faces in meeting Nasdaq's equity requirements.
Despite these challenges, Akari's stock has seen a significant price uptick of 108.33% over the last six months, suggesting some investor optimism, possibly related to the pending merger with Peak Bio. However, the stock has fared poorly over the last month, declining by 18.03%, which may reflect market uncertainty about the company's Nasdaq listing status.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable in assessing Akari's future prospects amidst its current regulatory challenges.
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