Hepion Pharmaceuticals faces potential Nasdaq delisting

Published 20/03/2025, 22:10
Hepion Pharmaceuticals faces potential Nasdaq delisting

Hepion Pharmaceuticals, Inc. (NASDAQ:HEPA), a pharmaceutical company, received a notice from the Nasdaq Stock Market on Monday, indicating that the company’s common stock has not met the minimum bid price requirement. The company’s stock has closed below $0.10 per share for the last 10 consecutive business days, triggering Nasdaq’s Low Priced Stocks Rule. InvestingPro data shows the stock has fallen 99.3% over the past year, with its market capitalization now at just $180,000.

The company, headquartered in Edison, New Jersey, is now at risk of being delisted from The Nasdaq Capital Market unless it requests an appeal by March 25, 2025, and pays the associated hearing fee of $20,000. Hepion Pharmaceuticals intends to appeal the decision, but there is no assurance that the appeal will be successful in maintaining its listing. The company’s financial health score is rated as "Weak" by InvestingPro, with concerning cash burn rates and negative returns on assets of -158%.

If Hepion Pharmaceuticals does not appeal or if the appeal is unsuccessful, the delisting will proceed, and its common stock will be removed from The Nasdaq Capital Market starting March 27, 2025. This development comes as a significant challenge for the company, which has been listed under the symbol HEPA.

The information provided in this article is based on a press release statement from the company’s SEC filing.

In other recent news, Hepion Pharmaceuticals has enacted a one-for-fifty reverse stock split of its common stock, effective after market close. This corporate action aims to help the company comply with Nasdaq’s minimum bid price rule for continued listing. The reverse stock split was authorized by stockholders at the annual meeting and is expected to reduce the number of issued and outstanding shares from approximately 54.25 million to roughly 1.08 million. Additionally, Hepion Pharmaceuticals announced a public offering expected to generate approximately $9 million in gross proceeds, which will be used for debt repayment and general corporate purposes.

The company also released its unaudited consolidated balance sheet as of January 31, 2025, providing investors with an updated snapshot of its financial position. Hepion Pharmaceuticals has received a notice from Nasdaq regarding non-compliance with a listing rule related to annual shareholder meetings. The company has 45 days to submit a compliance plan to Nasdaq, which, if accepted, could extend the deadline to demonstrate compliance until June 30, 2025. Meanwhile, Hepion’s common stock continues to trade on the Nasdaq Capital Market, and investors are closely monitoring the situation.

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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