Exicure boosts equity, eyes Nasdaq compliance

CHICAGO, IL - Exicure , Inc. (NASDAQ:XCUR), a pharmaceutical company specializing in drug development with a current market capitalization of $47.74 million, announced today that it has successfully increased its stockholders' equity to approximately $4.3 million, potentially satisfying the Nasdaq's minimum equity requirement for continued listing.

According to InvestingPro data, the company faces significant financial challenges, with a concerning current ratio of 0.71 and negative gross profit margins. InvestingPro subscribers have access to 15 additional key insights about XCUR's financial health.

Previously, on June 20, 2024, Exicure was notified by the Nasdaq that it failed to meet the minimum stockholders' equity threshold of $2.5 million, with a deficit standing at $2.2 million as of March 31, 2024. Following this, the company presented a plan to regain compliance and was granted an extension until today to meet the requirement.

To address the deficit, Exicure entered into agreements that resulted in the sale of shares to two entities. On November 12, Exicure sold 433,000 shares to HiTron Systems Inc. at $3.00 per share, yielding net proceeds of $1.3 million. A subsequent agreement on November 13 allowed for the sale of an additional 2.9 million shares to HiTron for $8.7 million, following stockholder approval at a special meeting held today.

Additionally, on December 9, Exicure reached an agreement with SangSangIn Investment & Securities Co., Ltd. to sell 433,332 shares at $4.61 each, which closed on December 12, resulting in $2 million in net proceeds.

The stock has shown remarkable momentum, with InvestingPro data revealing a striking 1049% return over the past six months, though analysts note the stock is currently trading above its Fair Value. Get comprehensive valuation analysis and more with an InvestingPro subscription.

Exicure's efforts to regain compliance with Nasdaq's listing criteria reflect its commitment to maintaining its presence on the market and to the interests of its shareholders. The company's forward-looking statements indicate caution due to the inherent risks and uncertainties in such financial maneuvers. It's important to note that these statements are based on expectations at the time and may change in the future.

In other recent news, Exicure, Inc. has undergone significant changes and received notable extensions. The pharmaceutical company secured $1.3 million in funding from HiTron Systems Inc., following the closure of a Purchase Agreement. This agreement also resulted in the appointment of two new directors, Andy Yoo and Seung Ik Baik, to Exicure's board. Yoo, the CEO of HiTron, has additionally been named the Chief Restructuring Officer of Exicure.

Exicure has also been granted extensions by the Nasdaq Hearings Panel to continue its listing on the exchange. The company must demonstrate compliance by December 17, 2024, to maintain its status. In a bid to meet these requirements, Exicure has converted approximately $1,000,000 of debt into equity and implemented a 1-for-5 reverse stock split.

In addition to these financial maneuvers, Exicure has entered into two significant debt-for-equity exchange agreements with DGP Co., Ltd., and an individual note holder. This strategy, along with the reverse stock split, aims to regain compliance with Nasdaq's minimum bid price requirement.

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