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Cyclacel Pharmaceuticals (NASDAQ:CYCC), Inc. is facing delisting from the Nasdaq Stock Market after failing to comply with the minimum stockholders' equity requirement. The pharmaceutical company, headquartered in Berkeley Heights, New Jersey, disclosed in a recent SEC filing that it received a notice from Nasdaq on August 22, 2024, indicating non-compliance with the listing rule that requires a minimum stockholders' equity of $2.5 million.
As of December 31, 2023, Cyclacel reported stockholders' equity of $607,000. In an effort to rectify the situation, the company raised approximately $6.3 million in net proceeds from an equity raise completed on May 2, 2024. Despite these efforts, Cyclacel's Form 10-Q for the period ending June 30, 2024, showed stockholders' equity of just $999,000. The company also reported that it had not exercised any outstanding warrants that could have potentially improved its equity position.
The latest notice from Nasdaq has set a deadline for Cyclacel to appeal the delisting decision by August 29, 2024. If the company does not appeal or if the appeal is unsuccessful, trading of Cyclacel's common and preferred stock will be suspended at the start of business on September 3, 2024, followed by the formal delisting of the company's securities.
Cyclacel's management is currently considering its options and intends to request an appeal of the Staff’s determination to the Nasdaq Hearings Panel. This action will delay any delisting until the completion of the hearing process. However, the company has cautioned that there is no guarantee that the appeal will be successful or that it will be able to meet Nasdaq's continued listing criteria in the future.
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