Imunon Inc. Faces Nasdaq Delisting Over Compliance Issues

Published 30/05/2025, 21:42
Imunon Inc. Faces Nasdaq Delisting Over Compliance Issues

Imunon, Inc., a pharmaceutical company currently trading at $2.49, is contending with the possibility of being delisted from the Nasdaq Capital Market after failing to meet the minimum bid price and stockholders’ equity requirements set by the exchange. According to InvestingPro data, despite a significant 71.5% return over the last week and a market capitalization of $53.8 million, the company, which was notified of its non-compliance with the minimum bid price requirement in November 2024, was unable to rectify the situation within the 180-day grace period ending on May 27, 2025.

The Nasdaq’s delisting determination letter, received by Imunon on May 28, 2025, outlined that the company’s common stock is subject to suspension and delisting unless they appeal the decision before a Nasdaq Hearing Panel by June 4, 2025. If no appeal is made, trading is set to be suspended on June 6, 2025. In addition to the bid price issue, Imunon also received a deficiency letter on May 19, 2025, regarding its failure to meet the minimum stockholders’ equity requirement, which serves as a separate basis for delisting. InvestingPro analysis reveals concerning financial health indicators, including a current ratio of 0.88, indicating short-term obligations exceed liquid assets.

Imunon plans to request a hearing, where it will seek to delay the delisting while it works to regain compliance, possibly through a reverse stock split, pending board and shareholder approval. A hearing request would typically suspend the delisting process until the panel reaches a decision, which is expected to occur 30-45 days post-request. The company’s stock is anticipated to remain listed during this period.

The company cautions that there is no guarantee they will regain compliance or that the panel will grant their request. The potential delisting could adversely affect the stock’s liquidity and price, as well as the company’s ability to raise capital and might trigger defaults under existing agreements. InvestingPro subscribers have access to 15+ additional exclusive insights about Imunon’s financial health, including detailed analysis of its cash burn rate and comprehensive Fair Value assessments. Get the full picture with InvestingPro’s detailed research report, part of our coverage of 1,400+ US stocks.

This news is based on a press release statement and reflects only the facts presented therein.

In other recent news, Imunon Inc reported a narrower-than-expected loss for the first quarter of 2025, with earnings per share (EPS) of -$0.28, beating analysts’ forecasts of -$0.3575. This financial performance comes amid significant developments in their clinical trials, particularly the promising results from a Phase 2 trial of IMNN-001 for advanced ovarian cancer. The trial showed a median increase in overall survival of 13 months when the treatment was combined with standard chemotherapy. Imunon has also initiated a Phase 3 study to further investigate the efficacy of IMNN-001, focusing on overall survival as the primary endpoint.

Additionally, the company announced favorable Phase 1 trial results for its investigational DNA plasmid vaccine, IMNN-101, which demonstrated durable protection against COVID-19. Despite these advancements, Imunon has faced challenges, including a Nasdaq notification regarding non-compliance with minimum stockholders’ equity requirements. The company has been given a deadline to submit a plan to regain compliance, with potential delisting as a risk if requirements are not met.

In another development, Imunon withdrew its public offering registration with the SEC, without disclosing reasons for this decision. The company is actively seeking partnerships and financing to support its clinical trials and strategic initiatives. These recent developments highlight Imunon’s ongoing efforts to advance its clinical programs and address its financial challenges.

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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