Gain Therapeutics, Inc. (GANX), a pharmaceutical company currently trading at $2.14 per share with a market capitalization of $56.5 million, announced on Monday that it has regained compliance with the Nasdaq’s Market Value of Listed Securities (MVLS) requirement.
According to InvestingPro data, the stock has shown significant volatility, posting a 66.4% gain over the past six months despite a recent 14.75% decline in the past week.
The Bethesda, Maryland-based company, which trades under the ticker GANX, had previously been notified by Nasdaq on January 8, 2025, that its MVLS had fallen below the minimum $50 million threshold required for continued listing on The Nasdaq Global Market.
The initial notification had no immediate impact on the trading of Gain Therapeutics’ common stock. While the company was at risk of being delisted if it failed to meet the MVLS requirement set by Nasdaq Listing Rule 5450(b)(2)(A), InvestingPro analysis shows the company maintains a healthy balance sheet with more cash than debt and a current ratio of 2.99, indicating strong short-term liquidity. From November 14, 2024, to December 27, 2024, the company’s MVLS was below the stipulated benchmark.
In a turnaround, by January 14, 2025, Gain Therapeutics had successfully raised its MVLS above the $50 million mark. The Nasdaq staff confirmed in writing on January 15, 2025, that the company had met the necessary requirement, effectively closing the matter.
The recovery in market value allows Gain Therapeutics to maintain its listing on The Nasdaq Global Market without any further compliance issues related to the MVLS. The company’s executive offices are located at 4800 Montgomery Lane, Suite 220, in Bethesda, and it operates under the jurisdiction of Delaware. The fiscal year for Gain Therapeutics ends on December 31.
The confirmation of compliance is a positive development for Gain Therapeutics, ensuring that its shares continue to be available to a broad base of investors through Nasdaq. While the company maintains listing requirements, InvestingPro subscribers have access to 12 additional investment tips and comprehensive analysis through the Pro Research Report, offering deeper insights into the company’s financial health and growth prospects. The platform’s Fair Value analysis suggests the stock is currently fairly valued.
This news is based on a press release statement from Gain Therapeutics and confirms the company’s current compliance status with Nasdaq’s listing requirements.
In other recent news, Gain Therapeutics has seen significant changes in its leadership and advancements in its clinical programs. The company appointed Gene Mack as its new President and CEO, with Gianluca Fuggetta promoted to Senior Vice President, Finance, and Principal Financial (NASDAQ:PFG) Officer.
Gain Therapeutics has also made strides in the development of GT-02287, its investigational drug for Parkinson’s disease. The drug, currently in Phase 1b trials, has shown promise in preclinical trials, improving motor and cognitive functions in animal models.
Analyst firms H.C. Wainwright, BTIG, and Roth/MKM have maintained their Buy ratings on Gain Therapeutics, reflecting confidence in GT-02287’s progress. The company has also regained compliance with Nasdaq’s minimum Market Value of Listed Securities requirement, ensuring its continued listing on the Nasdaq Global Market.
Despite facing challenges with cash burn rates, Gain Therapeutics’ Q2 financials for 2024 revealed operating expenses of $8.2 million and a cash balance of $16.9 million, indicating a healthy financial position. These recent developments highlight Gain Therapeutics’ ongoing efforts to develop innovative treatments for neurodegenerative diseases and other disorders.
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