IO Biotech, Inc., a pharmaceutical company with a market capitalization of $62 million, has been notified by The Nasdaq Stock Market LLC of non-compliance with its minimum bid price requirement.
On Thursday, the company received a warning that its common stock had closed below the required $1.00 per share for 30 consecutive trading days, violating Nasdaq’s Listing Rule 5450(a)(1). According to InvestingPro data, the stock currently trades at $0.98, with a 52-week range of $0.66 to $2.10.
Despite the notice, IO Biotech’s stock will continue trading on the Nasdaq Global Select Market without immediate consequence. The company has until June 24, 2025, to address the bid price deficiency. Compliance can be achieved if the stock’s closing bid price reaches or exceeds $1.00 for at least 10 consecutive trading days before the deadline.
Notably, InvestingPro analysis shows the stock has demonstrated recent momentum with a significant 22% gain over the past week, though it remains below its Fair Value estimate. Get access to 8 additional ProTips and comprehensive financial metrics with InvestingPro.
If IO Biotech fails to meet the requirement by June 24, 2025, it may seek an additional 180-day period to regain compliance by transferring its listing to the Nasdaq Capital Market. This is contingent on the company meeting all other initial listing standards for the Nasdaq Capital Market, except for the minimum bid price, and demonstrating its potential to rectify the bid price shortfall. The company maintains a strong liquidity position with a current ratio of 5.37, indicating substantial coverage of short-term obligations.
Nasdaq will assess whether IO Biotech is likely to remedy the deficiency. Should the company be deemed incapable of compliance, or if it does not qualify for the additional period, its stock may be delisted. In such an event, IO Biotech would have the right to appeal the delisting decision.
There is no guarantee that IO Biotech will satisfy the minimum bid price requirement or adhere to other Nasdaq listing criteria in the future. This information is based on a press release statement from IO Biotech.
In other recent news, IO Biotech has secured a loan facility of up to €57.5 million from the European Investment Bank (EIB) to advance its therapeutic cancer vaccines. The funding is expected to extend the company’s financial runway into the second quarter of 2026. The company has also reported promising results from a Phase 2 trial of its lead investigational candidate, IO102-IO103, showing potential in treating patients with metastatic non-small cell lung cancer. Furthermore, IO Biotech has enacted changes to its corporate governance documents and fiscal calendar, according to a recent SEC filing.
Analyst firms Piper Sandler and Morgan Stanley (NYSE:MS) have maintained an Overweight rating on IO Biotech, while Jefferies and H.C. Wainwright kept their Buy ratings. These ratings were influenced by recent data from the European Society for Medical (TASE:PMCN) Oncology conference and abstract data for IO Biotech’s IO102-103. Lastly, Kathleen Sereda Glaub, Peter Hirth, and Mai-Britt Zocca were elected as class III directors, serving until the 2027 Annual Meeting of Stockholders. These are the recent developments for IO Biotech.
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