Athira Pharma shifts to Nasdaq Capital Market amid compliance bid

Published 16/04/2025, 21:24
Athira Pharma shifts to Nasdaq Capital Market amid compliance bid

Athira Pharma, Inc., a biotechnology firm specializing in biological products, has been approved to transfer its common stock listing from the Nasdaq Global Select Market to the Nasdaq Capital Market. The move, effective as of the opening of business on Thursday, comes as the company seeks to regain compliance with Nasdaq’s minimum bid price requirement. According to InvestingPro data, the stock has experienced significant pressure, currently trading at $0.23, down nearly 89% over the past year.

The Bothell, Washington-based company, originally known as M3 Biotechnology, Inc., received notice on October 16, 2024, from the Listing Qualifications Department of Nasdaq that its stock price had failed to meet the minimum bid price of $1.00 over the previous 30 consecutive business days as stipulated by Nasdaq Listing Rule 5450(a)(1). Athira was initially given until April 14, 2025, to address the issue. InvestingPro analysis indicates the stock is currently trading near its 52-week low of $0.22, though technical indicators suggest oversold conditions. Subscribers to InvestingPro have access to 15 additional key insights about Athira’s financial health and market position.

In response, Athira Pharma submitted an application on April 4, 2025, to transfer its listing to the Nasdaq Capital Market, which provides an additional 180-day period to meet the bid price requirement. Following the approval, the company now has until October 13, 2025, to ensure its common stock’s minimum bid price reaches $1.00 for at least ten consecutive business days. Despite the stock price challenges, the company maintains a strong liquidity position with a current ratio of 4.18, indicating sufficient assets to cover short-term obligations.

The company’s leadership is actively seeking solutions to regain compliance and maintain its listing, including the possibility of a reverse stock split subject to stockholder approval at the 2025 annual meeting. The common stock will continue to trade under the ticker symbol "ATHA." While the company’s market capitalization has declined to $8.94 million, analysts expect profitability improvement in the coming year, according to InvestingPro forecasts.

Athira Pharma’s management cautions that this press release contains forward-looking statements, which are not guarantees of future performance. These statements involve risks and uncertainties that could cause actual results to differ materially, including the potential of not meeting the Nasdaq’s continued listing requirements or not implementing the reverse stock split. The company holds more cash than debt on its balance sheet, providing some financial flexibility during this challenging period.

Investors and stakeholders are reminded that Athira Pharma’s future plans are based on current expectations and may change. Further details on the risks involved are available in the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q.

This article is based on a press release statement from Athira Pharma, Inc. and its recent SEC filing.

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

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