EDISON, NJ - Hepion Pharmaceuticals, Inc. (NASDAQ:HEPA), a biopharmaceutical company with a market capitalization of just $3 million, disclosed receiving a notice from the Nasdaq Stock Market on Monday, indicating non-compliance with a listing rule related to annual shareholder meetings. According to InvestingPro analysis, the stock appears undervalued despite its recent challenges. Despite the notice, Hepion’s common stock continues to trade on the Nasdaq Capital Market.
The rule in question requires the company to hold an annual meeting of shareholders within twelve months of the fiscal year’s end. Hepion’s failure to do so has prompted Nasdaq to issue a warning regarding the company’s listing status. InvestingPro data reveals the company’s weak financial health score of 1.2 out of 5, with particularly concerning cash flow metrics. Subscribers can access 13 additional key insights about Hepion’s financial situation.
Hepion has 45 days from the date of the notice to submit a plan to regain compliance with Nasdaq’s requirements. If Nasdaq accepts the plan, Hepion could be granted an extension until June 30, 2025, to demonstrate compliance.
Should Nasdaq reject Hepion’s compliance plan, the company will have the opportunity to appeal before a hearings panel. As of now, there is no assurance that Hepion will be able to maintain the listing of its common stock on the Nasdaq Capital Market.
The notice has no immediate impact on the trading of Hepion’s common stock, which is still active under the ticker symbol "HEPA" at $0.43 per share. The stock has faced significant pressure, declining 15% in the past week and 83% over the last year. The company’s interim CEO and CFO, John Brancaccio, signed off on the SEC filing on Wednesday, January 15, 2025.
In other recent news, Hepion Pharmaceuticals has cancelled a merger and a stockholder meeting. The company faces significant financial challenges, as indicated by InvestingPro’s weak overall Financial Health Score of 1.25. Hepion has also halted activities in its ASCEND-NASH clinical trial. The company has been exploring a merger with Pharma Two B Ltd., a late-stage biotechnology firm, as a strategic move to advance its clinical trials.
However, Hepion’s board has advised shareholders to vote in favor of the merger, warning of potential Nasdaq delisting and bankruptcy if the merger is not approved. Hepion has until early January 2025 to submit a plan to regain compliance. The company has also seen changes in its executive leadership, with John Cavan stepping down as interim CEO and CFO, and John Brancaccio assuming these roles.
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