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SANTA ANA, Calif. - NKGen Biotech, Inc. (OTC:NKGN), a biotech firm specializing in natural killer (NK) cell therapeutics, has transitioned to trading on the OTC Markets starting today, following its delisting from the Nasdaq Global Market. The company, currently valued at $23.18 million in market capitalization, has seen its stock price decline to $0.29, marking a 38% drop over the past year. The company’s securities, including common stock and warrants, will continue trading under the ticker symbols "NKGN" for common stock and "NKGNW" for warrants. According to InvestingPro analysis, the stock shows high price volatility, with additional insights available to subscribers.
The Nasdaq Hearings Panel determined to delist NKGen’s common stock solely due to non-compliance with the market value requirement, effective after trading closed on Monday. The company’s financial health indicators from InvestingPro show concerning metrics, including a current ratio of 0.02 and negative EBITDA of $30.23 million. NKGen intends to apply to trade on the OTCQX platform, which demands adherence to SEC reporting standards, after a brief period on OTC Pink.
Despite the delisting, NKGen’s Chairman and CEO, Dr. Paul Y. Song, remains optimistic about the company’s scientific progress, particularly in the development of NK cell therapies for Alzheimer’s and other neurodegenerative diseases. With the next earnings report scheduled for April 17, 2025, investors following InvestingPro metrics will be watching closely for signs of improvement in the company’s financial position. Dr. Song highlighted the company’s FDA Fast Track designation and positive data presented at leading Alzheimer’s conferences.
NKGen’s recent compliance with SEC reporting obligations, as evidenced by the filing of its latest quarterly report, and the decision to cancel a proposed 1-for-6 reverse stock split, reflect the company’s commitment to maintaining regulatory standards. Interim CFO James Graf expressed confidence that the move to OTC Markets would not significantly impact ongoing financing discussions or shareholder support.
The company is actively focusing on completing enrollment in a Phase 2a Alzheimer’s clinical trial, with an initial readout anticipated later in 2025. NKGen aims to resume trading on Nasdaq once it meets the necessary listing requirements.
This article is based on a press release statement from NKGen Biotech.
In other recent news, NKGen Biotech has received Fast Track designation from the FDA for its Alzheimer’s therapy, troculeucel, following positive Phase 1 trial results. This status could expedite the drug’s development and review process, potentially leading to faster market approval. NKGen is also conducting a Phase 2a trial for troculeucel, with updated data expected by the end of 2025. The company has regained compliance with Nasdaq listing standards by meeting the minimum market value of publicly held shares requirement. Additionally, NKGen has amended a forward purchase agreement and is progressing with the acquisition of a controlling interest in NKMAX Co. Ltd., a biotech firm based in Seoul. In a strategic financial move, NKGen secured a $4.5 million convertible loan agreement with AlpineBrook Capital GP I Limited. The company has also granted significant stock options to its top executives, aligning their compensation with long-term shareholder interests. These developments reflect NKGen’s ongoing efforts to strengthen its financial and operational position within the biotech industry.
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