Entero Therapeutics faces Nasdaq delisting over equity shortfall

Published 14/04/2025, 21:28
Entero Therapeutics faces Nasdaq delisting over equity shortfall

Entero Therapeutics, Inc., a pharmaceutical company with a current market capitalization of $1.95 million and trading at $0.41 per share, has been notified by the Nasdaq that it is currently not in compliance with the minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market. This development was reported today following the receipt of a formal letter from Nasdaq on April 11, 2025.

The specific rule in question is Listing Rule 5550(b)(1), which mandates a minimum stockholders’ equity of $2.5 million. Entero’s equity stood at a negative $3.87 million as of December 31, 2024, according to their annual report. The company’s stock has declined significantly, with a one-week drop of 20% and a year-to-date decline of 37%. Additionally, the company did not meet alternative compliance standards related to the market value of listed securities or net income from continuing operations.

Entero Therapeutics has until Monday, May 26, 2025, to submit a plan to regain compliance. If the plan is accepted by Nasdaq, the company may be granted up to 180 calendar days, or until Wednesday, October 8, 2025, to meet the requirements. According to InvestingPro data, while the company maintains a healthy current ratio of 3.03, indicating sufficient liquid assets to meet short-term obligations, its overall financial health score stands at a concerning 1.96 out of 10. If the plan is rejected, Entero has the right to appeal the decision to a Nasdaq hearings panel.

The company has stated its intention to formulate and submit a plan within the specified timeframe. However, there is no guarantee that Nasdaq will accept this plan or that Entero will be able to regain and maintain compliance with Nasdaq’s listing requirements.

This information is based on a press release statement and reflects the current situation regarding Entero Therapeutics’ listing status with Nasdaq.

In other recent news, Entero Therapeutics has appointed Richard Paolone as its interim Chief Executive Officer. Paolone, who hails from Toronto, brings extensive experience in corporate finance, securities law, and mergers and acquisitions to the company. His career has been marked by significant involvement in public and private offerings of debt and equity securities, as well as a strong background in regulatory compliance and capital markets. Paolone has also served as a director or officer for various companies, providing strategic guidance and governance expertise. This leadership change suggests a potential strategic shift for Entero Therapeutics, as the company continues to focus on developing therapies for gastrointestinal diseases. The announcement of Paolone’s appointment was made through a press release by the company.

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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