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Conduit Pharmaceuticals Inc. (NASDAQ:CDT), a Delaware-incorporated pharmaceutical company with a market capitalization of just $1.97 million, disclosed on Wednesday that it has taken steps to address compliance issues with Nasdaq’s continued listing requirements. According to InvestingPro data, the company’s financial health is currently rated as WEAK, with a concerning current ratio of 0.12 indicating significant liquidity challenges. The company, previously operating under the name Murphy Canyon Acquisition Corp., has been grappling with the potential delisting of its common stock and warrants as a result of failing to meet the Nasdaq Market Value of Publicly Held Shares (MVPHS) and Market Value of Listed Securities (MVLS) requirements.
On February 11, 2025, Conduit Pharmaceuticals presented its compliance plan to the Nasdaq Hearing Panel, requesting additional time to meet the standards. The request followed an initial Notice of Delisting received on December 12, 2024, and subsequent notifications regarding the MVPHS and MVLS requirements dated August 15, 2024. The company was expected to update Nasdaq by February 19, 2025, and is currently awaiting the Panel’s decision.
Despite efforts to regain compliance, Nasdaq notified the company on February 12, 2025, that it had not met the necessary requirements within the initial 180-day grace period. The company’s struggles are reflected in its stock performance, with InvestingPro showing an 80.9% decline year-to-date and the stock currently trading near its 52-week low at $1.18. Consequently, this failure serves as an additional basis for potential delisting from the Nasdaq Global Market.
In parallel, Conduit Pharmaceuticals has taken definitive action to alleviate some of its financial strain. On February 13, 2025, the company fully repaid the outstanding balance of a Senior Note owed to Nirland Limited, totaling $926,149. This repayment also marks the fulfillment of all obligations under the associated Security Agreement, thus removing all liens and encumbrances from the company’s assets.
Conduit Pharmaceuticals’ proactive measures to settle its debt and comply with Nasdaq’s regulations reflect its commitment to maintaining its listing. However, the outcome remains uncertain as the company awaits the Nasdaq Hearing Panel’s determination. Track this developing situation with InvestingPro, which offers 17 additional investment tips for CDT and real-time alerts on critical financial metrics and compliance updates. This news is based on a press release statement and further updates regarding the company’s status on Nasdaq are anticipated.
In other recent news, Conduit Pharmaceuticals has made several significant financial maneuvers. The company has fully repaid a $600,000 promissory note, eliminating associated debt, and converted approximately $1.7 million of a senior secured promissory note into common stock. This conversion is part of Conduit’s strategy to strengthen its balance sheet. Additionally, Conduit Pharmaceuticals has announced a 1-for-100 reverse stock split, effective January 24, 2025, to meet Nasdaq’s minimum bid price requirement. This action was approved by stockholders and aims to consolidate shares to boost the share price.
In another development, Conduit Pharmaceuticals has received stockholder approval for the issuance of shares upon the exercise of certain warrants and conversion of promissory notes, securing additional capital for growth. The company is also addressing a Nasdaq delisting notice due to non-compliance with the minimum bid price requirement by planning a reverse stock split. Furthermore, Conduit has issued a convertible promissory note to A.G.P./Alliance Global Partners (NYSE:GLP) and amended its agreement with Nirland Limited, reflecting ongoing financial strategy and obligations. These recent developments highlight Conduit Pharmaceuticals’ efforts to manage its financial structure and remain compliant with Nasdaq standards.
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