NKGen Biotech faces Nasdaq compliance notice

Published 22/08/2024, 21:52
NKGen Biotech faces Nasdaq compliance notice

SANTA ANA, Calif. - NKGen Biotech, Inc. (NASDAQ:NKGN), a biotechnology company, disclosed on Monday that it has received a notice from the Nasdaq Stock Market for failing to file its quarterly financial report on time. The company did not meet the extended deadline of August 19, 2024, to submit its Form 10-Q for the quarter ended June 30, 2024, to the Securities and Exchange Commission (SEC).

The delay in filing results from recent changes in NKGen's independent registered public accounting firm and its valuation firm. The standard notice from Nasdaq indicates that NKGen has 60 days, or until October 21, 2024, to present a plan to regain compliance. If necessary, Nasdaq may allow up to 180 days from the original due date for the company to comply, extending the deadline to February 18, 2025.

Currently, the notice does not affect the listing or trading of NKGen’s common stock on the Nasdaq Global Market. NKGen is working with its auditors and advisors to file the required Form 10-Q promptly and aims to regain compliance within the 60-day period.

In a related Form 8-K filed with the SEC on August 22, 2024, the company provided additional details regarding the Nasdaq notification. This document is publicly available on the SEC's website for further information.

NKGen Biotech also made forward-looking statements in the press release regarding its ongoing clinical studies and the development of its product candidates, including SNK01. These statements, however, are subject to various risks and uncertainties, and there is no assurance that the company's plans will be realized as anticipated. Among the risks mentioned are potential delays in clinical studies, changes in interim results, and the need for additional funding to complete product development.

Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect the company's position as of the date of the press release. NKGen Biotech does not undertake any obligation to update these statements in light of new information or future events.

This article is based on a press release statement from NKGen Biotech, Inc.

In other recent news, NKGen Biotech Inc. has undergone several significant changes. The company announced the departure of its Chief Operating Officer, Pierre Gagnon, who will continue to serve in an advisory capacity until November 2024. On the financial front, NKGen Biotech secured $2.75 million in financing through a promissory note with CFIC-2015 NV Family Investments, LLC. The note allows conversion of outstanding principal and interest into common stock at $2.00 per share.

In its clinical trials, NKGen Biotech reported progress in its Phase I trial for SNK01, a potential Alzheimer's treatment. The therapy showed potential in reducing α-synuclein protein levels in Alzheimer's patients, with 60% of patients seeing a decrease. The U.S. Food and Drug Administration has also given clearance for the company's Investigational New Drug application for SNK01, a therapy aimed at treating Parkinson’s disease.

NKGen Biotech has made alterations to its financial agreements with various partners, including Sandia Investment Management LP, Polar Multi-Strategy Master Fund, and Meteora Capital Partners. The company also welcomed Dr. Marco Gottardis to its board, filling a vacancy left by Ms. Alana McNulty's resignation. Lastly, NKGen Biotech has recently engaged WithumSmith+Brown, PC as its new independent registered public accounting firm, replacing Ernst & Young LLP. These are the recent developments from NKGen Biotech.

InvestingPro Insights

NKGen Biotech, Inc. (NASDAQ:NKGN) has been navigating through challenging times, as evidenced by recent market data and performance metrics. The company's market capitalization stands at a modest $20.91 million, indicating a relatively small scale within the biotech industry. This is further reflected in the company's performance, with a significant drop in price over various time frames. Specifically, NKGen's stock has plummeted by over 36% in the past month and by a staggering 92% over the past year, underscoring a period of intense volatility and investor concern.

InvestingPro Tips highlight that NKGen Biotech's stock is currently trading near its 52-week low, which could signal a potential entry point for investors looking for undervalued opportunities. However, it's crucial to note that the stock is considered to be in oversold territory according to the Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements. Additionally, the company does not pay a dividend, which might deter income-focused investors.

Financial stability is another area of concern for NKGen, as its short-term obligations exceed its liquid assets. This could indicate potential liquidity issues that investors should be wary of. Moreover, the company has not been profitable over the last twelve months, a trend that prospective and current shareholders must consider when assessing the company's long-term viability.

Those interested in a deeper analysis can find a wealth of additional InvestingPro Tips to guide their investment decisions regarding NKGen Biotech on the dedicated InvestingPro page, which provides a more comprehensive look at the company's financial health and stock performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.