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WALTHAM, MA - Xilio Therapeutics, Inc., a biopharmaceutical company with a market capitalization of $34.84 million, has received a notification from the Nasdaq Stock Market indicating that the company's stock is at risk of being delisted due to its share price falling below the minimum required bid. On Monday, Xilio was informed that for 30 consecutive business days, its common stock had closed below the $1.00 threshold set by Nasdaq's Listing Rule 5450(a)(1). The stock, currently trading at $0.65, has declined 29.54% year-to-date and is trading near its 52-week low of $0.62. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation.
Despite the warning, the company's stock will continue to trade on the Nasdaq Global Select Market for the time being. Xilio has been granted a 180-day period, ending on October 1, 2025, to bring its stock price back above the $1.00 minimum bid. To regain compliance, the closing bid price must meet or exceed $1.00 for at least 10 consecutive business days within this timeframe. Nasdaq may choose to extend this period at its discretion. InvestingPro data shows the company maintains a healthy current ratio of 2.21 and holds more cash than debt on its balance sheet, potentially providing some financial flexibility during this challenging period.
Should Xilio fail to meet the requirement in the initial period, it may be eligible for an additional 180 days to comply. This is contingent upon transferring its stock listing to the Nasdaq Capital Market and meeting all other initial listing standards, except for the Minimum Bid Requirement. This would involve an application fee and a formal notice of intent to Nasdaq.
In the event Xilio does not achieve compliance during the second grace period and does not meet other listing standards, Nasdaq may issue a notice of delisting. The company would then have the right to appeal the decision before a Hearings Panel, with its stock remaining listed during the appeals process. However, the outcome of such an appeal is uncertain.
The company has stated its intention to monitor its stock's closing bid price closely and to evaluate all available options to regain compliance with Nasdaq's Minimum Bid Requirement. Nonetheless, there is no guarantee that Xilio will successfully regain compliance.
This news comes as a challenge for Xilio, which operates within the competitive pharmaceutical preparations industry under the organization name 03 Life Sciences. The information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Xilio Therapeutics announced a significant collaboration with AbbVie (NYSE:ABBV) to develop novel tumor-activated immunotherapies, including masked T cell engagers. This partnership involves a $52 million upfront payment to Xilio, with the potential for future payments totaling approximately $2.1 billion. The collaboration is expected to leverage Xilio's tumor-activation technology, aiming to improve cancer treatment efficacy while minimizing systemic adverse events. Additionally, Xilio reported its fourth quarter and full-year 2024 financial results, highlighting a solid cash position of $55.3 million as of December 31, 2024, up from $44.7 million the previous year. The company's license revenue for the fourth quarter was $1.7 million, with a full-year total of $6.3 million, primarily from an agreement with Gilead Sciences (NASDAQ:GILD). Research and development expenses decreased year-over-year, reflecting a reduction in investment in early-stage programs and the discontinuation of XTX202. Furthermore, Xilio entered into a $50 million sales agreement with Leerink Partners, allowing for "at the market" transactions of its common stock. This agreement is part of Xilio's strategy to strengthen its financial position and advance its pharmaceutical preparations business.
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