Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), a company specializing in biological products, has been notified by the New York Stock Exchange (NYSE) of the delisting of its public warrants, effective as of Monday. The NYSE cited "abnormally low" trading price levels as the reason for the delisting and has suspended trading of the warrants, which were exercisable for one-fortieth of a share of Ginkgo's Class A common stock at $11.50 each.
The delisting does not affect Ginkgo Bioworks' Class A common stock, which continues to be traded on the NYSE under the ticker symbol "DNA". This news comes following the company's recent return to compliance with the NYSE's minimum price criteria. On Monday, the company was informed that it had regained compliance and would be removed from the noncompliant issuers list.
Previously, on May 13, 2024, Ginkgo Bioworks had received notice from the NYSE regarding noncompliance with the continued listing minimum price criteria. However, as of August 30, 2024, both the closing price and the average closing price of the Class A common stock over the preceding 30 trading days were above the required $1.00 threshold.
The warrants in question were initially issued in connection with the initial public offering of Soaring Eagle Acquisition Corp. and were trading on the NYSE under the symbol "DNA.WS". Ginkgo Bioworks, which operates under the organization name 03 Life Sciences, is incorporated in Delaware and maintains its headquarters in Boston, MA.
In other recent news, Ginkgo Bioworks has been making significant strides. The company has regained compliance with the New York Stock Exchange (NYSE) listing standards, following a period of non-compliance. A 1-for-40 reverse stock split was implemented, an action that was reflected in adjusted stock targets by BTIG and Goldman Sachs. Both firms have set a new price target of $7.00, maintaining a Sell rating on Ginkgo Bioworks.
The company's revenue and earnings forecasts remain steady, with projected revenues of $187.0 million, $189.7 million, and $201.7 million for the years 2024, 2025, and 2026, respectively. Despite a 20% decrease in cell engineering revenue to $36 million, Ginkgo Bioworks continues to expect cell engineering revenue between $120 million to $140 million for the full year.
Ginkgo Bioworks has also made significant amendments to its corporate charter, including officer exculpation provisions. Furthermore, the company is implementing cost reduction strategies, expecting over $85 million in annualized savings. These recent developments highlight the company's strategic adjustments and financial outlook.
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