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Turnstone Biologics Corp., a biotechnology company specializing in biological products, has been approved to transfer its stock listing from the Nasdaq Global Market to the Nasdaq Capital Market, effective as of the opening of business on Monday, March 31, 2025. The move comes after the company failed to meet the minimum bid price requirement and was granted an additional 180 days to comply. According to InvestingPro data, the company’s stock has fallen over 85% in the past year, with its market capitalization now standing at just $9.48 million.
The La Jolla, California-based company, trading under the ticker (NASDAQ:TSBX), received a notice from Nasdaq on September 27, 2024, stating it did not meet the $1.00 minimum bid price requirement over the preceding 30 business days. Currently trading at $0.41, the stock is significantly below its 52-week high of $3.88. In response, Turnstone Biologics applied to transfer its listing as a strategic step to maintain its Nasdaq presence. The Nasdaq Capital Market, where the company’s securities will now be traded, has less stringent listing requirements but still requires companies to adhere to financial and corporate governance standards. InvestingPro analysis indicates the company is rapidly burning through cash, with an EBITDA of -$70.5 million in the last twelve months.
To regain compliance with the minimum bid price requirement and maintain its listing on the Nasdaq Capital Market, Turnstone Biologics’ common stock must reach a minimum bid price of $1.00 for at least ten consecutive business days during the new grace period ending on September 22, 2025. The company has informed Nasdaq of its intention to implement a reverse stock split if necessary to meet this requirement, subject to stockholder approval.
Should the company fail to meet the minimum bid price requirement by the end of the additional grace period, its stock may face delisting from Nasdaq. The company’s financial health score is rated as ’Weak’ by InvestingPro, which has identified 7 additional key factors affecting the company’s outlook. Turnstone Biologics would have the opportunity to appeal any delisting decision to a Nasdaq Hearings Panel, and during the appeal process, its stock would remain listed on the Nasdaq Capital Market. If ultimately delisted, the company’s stock could potentially trade on over-the-counter markets.
This report is based on statements from an SEC filing by Turnstone Biologics.
In other recent news, Turnstone Biologics has announced the discontinuation of its TIDAL-01 clinical program, aimed at treating solid tumors, due to the need for substantial investment in manufacturing process improvements. This decision has prompted the company to explore strategic alternatives, including potential mergers, acquisitions, or asset sales. In response to these developments, Piper Sandler downgraded Turnstone Biologics’ stock rating from Overweight to Neutral, significantly reducing the price target from $3.75 to $0.40. The downgrade reflects Piper Sandler’s assessment of the company’s estimated cash balance for the first quarter of 2025, anticipated to be around $11 million.
Turnstone Biologics has engaged a financial advisor to assist with the strategic review process and is implementing workforce reductions and cost-containment measures to conserve cash. Despite these changes, the company plans to retain essential employees to support value realization during the strategic review. President and CEO Sammy Farah cited the capital-intensive nature of the TIDAL-01 program and current financial market conditions as reasons for the discontinuation. The company has stated it will not disclose further developments until it is appropriate or legally required.
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