Viracta Therapeutics to be delisted from Nasdaq

Viracta Therapeutics, Inc. (NASDAQ:VIRX), a pharmaceutical company with a market capitalization of just $6 million, is set to be delisted from the Nasdaq Stock Market LLC, with trading of its common stock to be suspended starting February 4, 2025.

Currently trading at $0.15 per share, down nearly 73% over the past year according to InvestingPro data, the delisting notice received by the company on January 31, 2025, follows previous warnings from Nasdaq regarding non-compliance with the exchange’s listing rules.

The initial notification of non-compliance came on May 28, 2024, when Viracta’s stock price fell below the $1.00 minimum requirement. Subsequently, on November 21, 2024, Nasdaq informed the company that its stockholders’ equity had dipped below the required $2,500,000 threshold for continued listing on the Nasdaq Capital Market. InvestingPro analysis reveals concerning metrics, including a weak financial health score of 1.34 and rapidly diminishing cash reserves.

Post-delisting, Viracta anticipates that its common stock will trade on the OTC Pink Open Market under the same ticker symbol "VIRX". However, the OTC Pink Open Market offers a more restricted trading environment compared to Nasdaq, potentially leading to reduced liquidity and a decrease in the stock’s trading price.

With a current ratio of 0.76 and short-term obligations exceeding liquid assets, as highlighted by InvestingPro, the company has cautioned that there can be no certainty regarding the continuity of public trading or quote provision by broker-dealers on this market.

Investors seeking deeper insights into Viracta’s financial health and prospects can access comprehensive analysis through the Pro Research Report available on InvestingPro.

This news is based on a press release statement and reflects the company’s status as of January 31, 2025. Viracta Therapeutics has not provided any further comment on the potential implications of the delisting on its operations or financial performance.

In other recent news, Viracta Therapeutics, Inc. has entered into a forbearance agreement with its lenders, temporarily avoiding default. The company has agreed to apply its cash towards its outstanding debt and adhere to a budget agreed upon with its lenders. In return, the lenders will hold off on exercising their rights related to the company’s previously disclosed default events. This arrangement allows Viracta to manage its financial obligations and avoid immediate default.

Additionally, Viracta faces potential delisting from Nasdaq due to non-compliance with audit committee requirements and minimum bid price and stockholders’ equity requirements. The company has been given a grace period to address these issues. In response, Viracta has made strategic changes including a 42% workforce reduction to focus on its Nana-val development program for EBV-positive peripheral T-cell lymphoma (PTCL) and resizing its Board of Directors from ten to six members.

Promising results from the NAVAL-1 trial stages 1 and 2 have led to plans for a Randomized Controlled Trial in 2025. Amid these developments, RBC Capital maintained an Outperform rating on Viracta’s stock. The company has also appointed Michael Faerm as its new Chief Financial Officer and reported cash reserves of around $30 million as of the second quarter of 2024.

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