Bullish indicating open at $55-$60, IPO prices at $37
Eterna Therapeutics Inc. (NASDAQ:ERNA), a pharmaceutical company, is confronting the possibility of being delisted from the Nasdaq Stock Market after failing to meet the minimum stockholders' equity requirement. The company, which was previously known as Brooklyn ImmunoTherapeutics, Inc., received a notice from the Nasdaq's Listing Qualifications Staff on Monday, September 17, 2024, indicating its non-compliance with the rule that requires a minimum stockholders' equity of $2.5 million.
The notice came despite Eterna Therapeutics' submission of a compliance plan earlier in May 2024, which was accepted by Nasdaq, granting the company an extension until September 16, 2024, to regain compliance. However, as the deadline passed, the company did not meet the required threshold.
Unless Eterna Therapeutics appeals by September 24, 2024, trading of its common stock will be suspended at the opening of business on Wednesday, September 26, 2024. A Form 25-NSE will also be filed with the Securities and Exchange Commission to formally remove the company's securities from listing and registration on Nasdaq.
In response to the notice, Eterna Therapeutics plans to request a hearing with Nasdaq's Hearings Panel to appeal the Staff's determination. This request will temporarily halt the suspension of trading and the filing of the Form 25-NSE until the Hearings Panel reaches a decision. Hearings usually take place within 30 to 45 days after the request, with decisions typically issued within 30 days post-hearing.
The company's future regarding the listing of its common stock on The Nasdaq Capital Market is uncertain, as there is no guarantee of a favorable outcome from the hearing. This report contains forward-looking statements, including the timing of the hearing and the Hearings Panel's decision, which are subject to risks and uncertainties.
In other recent news, Eterna Therapeutics Inc. has announced a notable change in its annual meeting of stockholders, now scheduled for September 27, 2024. This represents a significant shift from the previous year's meeting timeline. The company, which has undergone several name changes including Brooklyn ImmunoTherapeutics Inc., NTN Buzztime Inc., and NTN Communications Inc., made this announcement on August 16, 2024.
Stockholders who intend to bring business to the annual meeting or nominate board of directors candidates must submit their notice by August 29, 2024. Additionally, stockholder proposals to be included in Eterna's proxy statement under Rule 14a-8 of the Securities Exchange Act are to be received by the same date.
All such submissions must comply with the company's bylaws, Exchange Act regulations, and other applicable laws, and will be received at the company's principal executive offices in Cambridge, MA.
InvestingPro Insights
As Eterna Therapeutics Inc. faces the challenges of non-compliance with Nasdaq's listing requirements, a glance at recent InvestingPro data and tips may provide investors with additional context on the company's financial health. The company's stock has suffered significant declines, with a one-week total price return of -15.23% and an even steeper one-month return of -30.81%. Over the last six months, the downward trend has been pronounced, with a total return of -46.22%.
InvestingPro Tips suggest that Eterna is quickly burning through cash and analysts are not optimistic about the company's profitability this year. The company operates with a moderate level of debt, but with short-term obligations exceeding liquid assets and a net income expected to drop, the financial stability of Eterna is in question. These concerns are reflected in the company's gross profit margin, which stands at a negative 111.11% for the last twelve months as of Q2 2024.
For investors seeking more detailed analysis and additional InvestingPro Tips, there are currently 15 listed for Eterna Therapeutics, providing a broader picture of the company's financial standing and market performance. This information can be critical for making informed decisions, especially in light of the company's current appeal to Nasdaq's Hearings Panel to avoid delisting.
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