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Moolec Science SA (NASDAQ:MLEC), a Luxembourg-based biotech company with a market capitalization of $33.79 million, is confronting the risk of delisting from The Nasdaq Global Market. The company has been notified by Nasdaq’s Listing Qualifications Department that its shares did not meet the minimum bid price requirement of $1.00 over a 30-day period ending on September 10, 2024, and failed to regain compliance since. According to InvestingPro data, the stock has declined 50% over the past year, while demonstrating high price volatility.
The company, which is also not eligible for a second 180-day compliance period due to not meeting the minimum stockholders’ equity requirement, must appeal this determination by March 18, 2025, to prevent its shares from being delisted on March 20, 2025. Moolec has initiated an appeal and intends to propose a reverse share split to regain compliance with Nasdaq’s Listing Rule 5550(a)(2). InvestingPro analysis reveals concerning financial metrics, including negative EBITDA of -$7.88 million and rapid cash burn, though the company maintains a current ratio of 1.51, indicating adequate short-term liquidity.
Today, Moolec’s board of directors has decided to call an extraordinary shareholders meeting to vote on the reverse share split. The company is actively working on measures to meet Nasdaq’s requirements and is in communication with the exchange’s staff regarding these efforts. Despite achieving impressive revenue growth of 105.74% in the last twelve months, there is no guarantee that the company will obtain an extension from the Hearings Panel or satisfy the compliance criteria within any granted extension period. For deeper insights into Moolec’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US-listed companies.
This press release contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. The actual results may differ materially from those projected due to various factors, including economic, business, and competitive factors. Moolec has cautioned that the forward-looking statements are predictions based on current expectations that may not prove accurate. The company does not undertake any obligation to update these statements unless required by securities laws.
The information in this article is based on a press release statement from Moolec Science SA.
In other recent news, Moolec Science SA announced significant developments following its 2024 Annual Shareholders’ Meeting and Extraordinary General Meeting. Shareholders approved the company’s annual accounts for the fiscal year ending June 30, 2024, and agreed on the allocation of the fiscal year’s results. Additionally, the reappointment of directors Kyle P. Bransfield, Jose Lopez Lecube, Gastón Paladini, Natalia Zang, and Esteban Corley was confirmed, along with the reappointment of the company’s statutory auditor. A major decision made during the meetings was the approval to relocate Moolec Science’s central administration and registered office from Luxembourg to the Cayman Islands. This relocation includes adopting new memorandum and articles of association to comply with Cayman Islands law and appointing new directors effective upon the legal change of nationality. The move is expected to take effect once the application for continuation is filed with the Cayman Islands Registrar of Companies. These decisions reflect Moolec Science’s strategic plans and adherence to legal procedures. The information is derived from the company’s Form 6-K filing with the SEC.
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