Klotho Neurosciences faces Nasdaq delisting risk

Published 21/04/2025, 22:26
Klotho Neurosciences faces Nasdaq delisting risk

Klotho Neurosciences, Inc., a biotech company specializing in biological products with a market capitalization of just $4.85 million, is confronting the possibility of being delisted from the Nasdaq Stock Market. The company, which operates under the ticker KLTO, has been struggling to meet Nasdaq’s continued listing requirements, particularly concerning the market value of its publicly held shares and listed securities. According to InvestingPro data, KLTO’s stock has lost 98.31% of its value over the past year, reflecting severe market challenges.

On April 15, 2025, Klotho received a notice from Nasdaq indicating non-compliance with the minimum bid price requirement, which states that the bid price of the company’s common stock must remain at or above $1 per share. The stock currently trades at $0.16, significantly below this threshold, with InvestingPro analysis indicating concerning financial health metrics, including a weak current ratio of 0.13. This recent notice follows a series of compliance challenges for Klotho, beginning with delinquency notifications received on August 16, 2024, regarding the company’s market value.

Despite being granted a 180-day grace period until February 12, 2025, to regain compliance, Klotho was unable to meet the criteria. Subsequently, the company requested a hearing with a Nasdaq Hearings Panel, which occurred on March 27, 2025. InvestingPro subscribers can access additional insights, including 8 more key tips about KLTO’s financial position and market performance. At the hearing, Klotho’s management presented a Compliance Plan, aiming to demonstrate how the company would achieve full compliance with Nasdaq’s Listing Rules by August 3, 2025.

The Panel responded on March 31, 2025, with a written notification granting Klotho an extension until August 13, 2025, to meet the Bid Price Rule. This extension is conditional on the company reaching certain milestones and informing Nasdaq of its progress. Failure to meet these milestones could lead to the revocation of the extension.

The April 15 Notice serves as a reminder of the precarious position Klotho is in regarding its Nasdaq listing. The company is required to submit a written response to the Panel by April 22, 2025, addressing the latest deficiency.

Klotho Neurosciences, which has undergone name changes from ANEW Medical (TASE:BLWV), Inc. and Redwoods Acquisition Corp. in the past, is headquartered in Omaha, NE. While the company’s Fair Value analysis suggests slight undervaluation, its financial health score remains weak at 0.87. The company’s CEO, Joseph Sinkule, signed the SEC filing on April 21, 2025, asserting Klotho’s commitment to regaining compliance within the set timeframe.

This information is based on a press release statement from an SEC filing.

In other recent news, Klotho Neurosciences, Inc. has secured $2 million through a securities purchase agreement involving convertible promissory notes and warrants. This financial arrangement includes the issuance of two senior convertible promissory notes totaling $2,173,914 and warrants for up to 4 million shares of common stock. The notes carry a 7% annual interest rate and are set to mature one year from issuance. In a strategic expansion move, Klotho Neurosciences announced a definitive agreement to acquire SB Security Holdings, LLC, a subsidiary of SkyBell Technologies, Inc. This acquisition will involve Klotho issuing new shares representing 90% of its post-deal common stock to SkyBell. Additionally, Klotho Neurosciences has been granted an extension by The Nasdaq Stock Market LLC to meet listing requirements until August 13, 2025, after previously facing a delisting notice. The extension is contingent on the company meeting specific milestones. These developments reflect significant changes in Klotho’s business strategy and financial positioning.

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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