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PITTSBURGH - Lipella Pharmaceuticals Inc. (OTC: LIPO) has been delisted from The Nasdaq Capital Market, with trading of its common stock suspended as of Friday, according to a company statement. The company’s stock, which has fallen over 10% in the past week and is trading near its 52-week low of $1.97, now trades at $1.80.
The Nasdaq Hearings Panel determined that private placement transactions completed between December 2024 and March 2025 violated several listing rules, including those concerning public interest, shareholder approval, and voting rights. Specifically, Nasdaq cited issues with the company’s issuance of Series C voting convertible preferred stock and warrants to Lipella’s placement agent and advisor.
Despite Lipella’s reported efforts to address Nasdaq’s concerns, the delisting became effective immediately. The clinical-stage biotechnology company’s shares now trade on the OTC Markets under the symbol LIPO.
"We acknowledge Nasdaq’s decision and are focused on taking swift, constructive steps accordingly," said Dr. Jonathan Kaufman, Chief Executive Officer of Lipella, in the press release. "Our commitment to our shareholders, our mission, and our clinical goals has not changed." According to InvestingPro data, the company maintains strong liquidity with a current ratio of 6.21 and holds more cash than debt on its balance sheet, suggesting financial stability despite recent challenges.
The company stated it remains operationally sound and is continuing to advance its lead product candidates LP-10 for hemorrhagic cystitis and LP-310 for oral lichen planus. Lipella also indicated it is exploring alternative markets to list its common stock. While the company is not currently profitable, with an EBITDA of -$5.19 million in the last twelve months, InvestingPro analysis suggests the stock is currently undervalued. Subscribers can access 5 additional ProTips and comprehensive financial metrics to better understand the company’s potential.
Lipella will maintain its status as a reporting company under the Securities Exchange Act of 1934 and continue filing periodic reports with the U.S. Securities and Exchange Commission.
The biotechnology firm, which completed its initial public offering in 2022, focuses on developing new drugs by reformulating active agents in existing generic drugs for new applications.
In other recent news, Lipella Pharmaceuticals has renewed its manufacturing collaboration with Cook MyoSite. This partnership is intended to support the Chemistry, Manufacturing, and Control documentation for Lipella’s clinical products, LP-10 and LP-310. In a separate development, the company announced it believes it has regained compliance with Nasdaq’s stockholders’ equity requirement after raising substantial funds through private placement offerings and the issuance of warrants. These efforts generated net proceeds of approximately $5.9 million and gross proceeds of $9,000, respectively, which contributed to a reported stockholders’ equity of about $1.9 million. Additionally, Lipella Pharmaceuticals has amended its corporate charter to increase the shares in its Series C Voting Convertible Preferred Stock from 1,050,000 to 1,260,000. Although the company has not disclosed the reasons for this increase, such corporate actions may relate to financing activities or corporate governance. These updates reflect Lipella’s ongoing efforts to strengthen its financial position and advance its clinical pipeline.
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