Biotechnology firm Pluri Inc. has received a warning from the Nasdaq Stock Market due to non-compliance with the exchange's minimum stockholders' equity requirement. On Monday, the company was notified of its failure to meet the continued listing standard, which requires a minimum stockholders' equity of $2.5 million.
The notice also indicated that Pluri does not meet alternative compliance standards based on market value or net income. The Nasdaq Capital Market, where Pluri's common shares are traded under the ticker symbol PLUR, mandates these requirements for continued listing.
In response to the deficiency letter from Nasdaq, Pluri plans to submit a compliance plan within the 45-day deadline set by the exchange. If Nasdaq accepts the plan, Pluri could be granted an extension of up to 180 days to regain compliance.
Should the company fail to meet the requirements within the granted extension period, it has the right to appeal before an independent panel. During the appeal process, any delisting or suspension actions would be on hold.
Pluri, which operates in the biological products sector, is exploring all viable options to address the issue and maintain its listing on Nasdaq. The company's shares will continue to trade normally during this period.
In other recent news, Pluri Inc., a biotechnology firm, has regained compliance with the Nasdaq Capital Market's stockholders' equity requirement. The company had previously received a deficiency notice from Nasdaq for failing to meet the minimum stockholders' equity threshold, but has since rectified the shortfall, confirmed by Nasdaq. This resolution allows Pluri Inc. to continue its listing on the Nasdaq Capital Market without the risk of delisting.
In addition to these developments, Pluri Inc. has entered a proof of concept agreement with an undisclosed international agriculture corporation. This strategic move aims to boost the global vegetable supply through Pluri's proprietary 3D cell expansion technology. On the executive front, CFO Chen Franco-Yehuda has resigned, with Liat Zalts stepping in as her successor.
Further, Pluri's subsidiary, Ever After Foods Ltd., has secured $10 million to enhance its cultivated food production technology. The company continues to receive funding from the U.S. National Institute of Allergy and Infectious Diseases for its cell therapy PLX-R18 and has secured a U.S. patent for a novel method of expanding immune cells. Pluri also entered a manufacturing agreement with Remedy Cell Ltd. for a drug candidate aimed at treating Idiopathic Pulmonary Fibrosis.
InvestingPro Insights
Pluri Inc.'s current financial situation, as highlighted by InvestingPro data, provides additional context to the company's Nasdaq listing challenges. With a market capitalization of $30.52 million USD, Pluri is operating in a precarious position, which is further emphasized by its negative P/E ratio of -1.34. This aligns with the InvestingPro Tip that the company "is not profitable over the last twelve months."
The company's revenue growth is a bright spot, with a remarkable 503.7% increase in quarterly revenue as of Q1 2025. However, this growth comes with significant challenges. An InvestingPro Tip warns that Pluri is "quickly burning through cash," which could explain the company's struggle to maintain the required stockholders' equity for Nasdaq listing.
Despite these challenges, there are some positive indicators. The stock has shown a "strong return over the last month" with a 23.57% price total return. Additionally, another InvestingPro Tip suggests that "analysts predict the company will be profitable this year," which could potentially help Pluri address its listing compliance issues if realized.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for Pluri Inc., providing a deeper understanding of the company's financial health and market position.
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