SAN MATEO, CA – Kronos Bio, Inc., a pharmaceutical company, has been notified by The Nasdaq Stock Market that it is currently not meeting the minimum bid price requirement, a situation that could potentially lead to the delisting of the company's shares if not corrected.
On Monday (NASDAQ:MNDY), Kronos Bio's common stock was reported to have closed below the minimum $1.00 per share threshold for 30 consecutive business days, violating Nasdaq's Listing Rule 5450(a)(1). This rule stipulates that listed companies must maintain a minimum bid price of $1.00 per share. Despite this setback, the notification does not immediately affect the trading of Kronos Bio's stock on The Nasdaq Global Select Market.
The company has been granted a 180-day period, ending on May 5, 2025, to regain compliance. During this time, Kronos Bio must ensure that its common stock's minimum bid price equals or exceeds $1.00 per share for at least ten consecutive business days. If compliance is not achieved by the deadline, Kronos Bio has the option to transfer its listing to The Nasdaq Capital Market, where it would be granted an additional 180 days to meet the requirement, provided it meets all other listing standards except for the bid price.
Failure to meet the compliance requirements within the given timeframe could lead to a delisting notification from Nasdaq. However, Kronos Bio would have the right to appeal against the delisting decision. The company has expressed its intention to monitor its stock's bid price closely and to explore all available options to regain compliance with Nasdaq's listing standards.
This situation highlights the challenges faced by Kronos Bio in maintaining its stock market listing standards, which is a crucial aspect for investor confidence and the company's ability to raise capital. It is based on the company's latest SEC filing and reflects the factual situation without speculation on potential outcomes or the company's future actions.
In other recent news, Kronos Bio continues to make strides in its drug development pipeline. The firm recently reported maintaining a healthy cash reserve of $136.6 million, set to support its operations until the second half of 2026. Kronos Bio is progressing with its KB-7898 compound for Sjögren's disease, with preclinical data indicating the potential of KB-7898 to decrease auto-antibodies and inflammatory cytokine signatures, key factors in autoimmune diseases. This data is slated for presentation at the upcoming ACR conference.
Additionally, Piper Sandler has maintained its Overweight rating on Kronos Bio, validating the company's efforts. Kronos Bio is also preparing for IND-enabling studies for KB-7898, anticipated to begin in the fourth quarter of 2024, and a Phase I study for another drug, KB-9558, targeted at relapsed/refractory multiple myeloma, expected to start in the first half of 2025.
Moreover, Kronos Bio is actively enrolling patients for an ovarian cancer expansion cohort to test istisociclib. Detailed results from this study are expected in the first half of 2025.
InvestingPro Insights
Recent InvestingPro data sheds light on Kronos Bio's financial situation, providing context to the company's Nasdaq listing challenges. As of the last twelve months ending Q2 2024, Kronos Bio reported revenue of $8.41 million, with a substantial revenue growth of 172.76%. However, the company's operating income stands at -$96.12 million, indicating significant operational losses.
InvestingPro Tips reveal that Kronos Bio is "quickly burning through cash" and "not profitable over the last twelve months," which aligns with the company's struggle to maintain its Nasdaq listing. The stock's volatility, as noted by another InvestingPro Tip, may contribute to the difficulty in sustaining the required $1.00 per share minimum bid price.
On a positive note, Kronos Bio "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company works to address its listing compliance issues. For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide valuable insights into Kronos Bio's financial health and market position.
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