Scorpius Holdings faces delisting from NYSE American

Scorpius Holdings, Inc., a pharmaceutical company whose stock has plunged 99.58% over the past year to $0.13, has been notified of non-compliance with NYSE American’s continued listing standards due to the late filing of its annual report for 2024. According to InvestingPro data, the company’s market capitalization has shrunk to just $0.64 million amid mounting operational challenges. The notice, received on Monday, April 16, 2025, indicated the company did not meet the timely filing criteria as outlined in Section 1007 of the NYSE American Company Guide.

The delinquency stems from the company’s inability to file its Annual Report on Form 10-K by the April 15, 2025 deadline. Scorpius Holdings cited time constraints that made it impractical to file without undue hardship and expense. Financial data from InvestingPro reveals concerning metrics, including a negative gross profit margin of 90.52% and a current ratio of 0.62, indicating the company’s short-term obligations exceed its liquid assets. As a result, the company has entered a six-month period during which the Exchange will monitor its progress on filing the overdue report.

If Scorpius Holdings fails to file within this initial period, it may be granted an additional six months to regain compliance. However, the Exchange retains the discretion to forgo these cure periods or truncate them if it deems continued listing inadvisable.

In a subsequent development on Thursday, April 21, 2025, Scorpius Holdings received a notice from NYSE Regulation announcing the suspension of trading of its common stock and the initiation of delisting procedures. This decision was based on the low selling price of the company’s stock, as per Section 1003(f)(v) of the NYSE American Company Guide.

Scorpius Holdings intends to appeal the delisting decision and has the right to a review by the Listings Qualifications Panel. While the company plans to request this review, the outcome of the appeal cannot be guaranteed. Pending the completion of the appeal process, the NYSE American will seek SEC approval to delist the company’s common stock.

This news is based on a press release statement and reflects the current situation of Scorpius Holdings, Inc. regarding its listing status on the NYSE American exchange. InvestingPro subscribers have access to 12 additional tips about Scorpius Holdings and comprehensive financial health metrics that provide deeper insights into the company’s challenges.

In other recent news, Scorpius Holdings has made several strategic moves impacting its financial and operational structure. The company has secured two non-convertible promissory notes, one valued at $1 million and another at $600,000, both carrying an annual interest rate of 5.0%. These financial agreements, detailed in recent SEC filings, are part of Scorpius Holdings’ efforts to manage short-term funding needs. Additionally, Scorpius Holdings has completed a lease assignment for its former Morrisville, North Carolina offices, transferring lease obligations to a third party and selling office furnishings for $55,720.17. This transaction is expected to save the company over $4 million in rent and related costs. The company also amended its agreement with Elusys Holdings, removing a $2.5 million obligation in exchange for an immediate $500,000 payment. In governance updates, Scorpius Holdings expanded its Board of Directors by appointing Tan Sze Thuan, a logistics expert, as a new board member. Furthermore, the company has amended the employment terms for key executives Jeffrey Wolf and William Ostrander, allowing for remote work and adjusting severance conditions. These developments reflect Scorpius Holdings’ ongoing adjustments in leadership and financial strategies.

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