Revelation Biosciences, Inc., a pharmaceutical company, is currently facing delisting from The Nasdaq Capital Market due to non-compliance with the Nasdaq Listing Rule 5550(b)(1).
The rule necessitates a minimum stockholders’ equity of $2.5 million, which the company has failed to maintain. As reported in its latest quarterly filing, the company's stockholders' equity stood at $1,140,421 as of June 30, 2024.
The notification of non-compliance was received by the company on Monday, August 14, 2024, following the submission of their quarterly financials. Revelation Biosciences has been given a 45-day period to present a plan to Nasdaq for regaining compliance. If the plan is accepted, the company could be granted up to an additional 180 days to meet the listing standards.
In the event that Nasdaq rejects the company's compliance plan, or if the company fails to regain compliance within the granted extension period, Revelation Biosciences has the right to request a hearing before an independent panel.
This request would postpone any delisting action until the hearing process is concluded and any further extension period granted by the panel has expired.
The company has expressed its intention to undertake all reasonable measures to regain compliance and retain its listing on Nasdaq. However, it is uncertain whether Nasdaq will grant the extension request or whether Revelation Biosciences will be able to satisfy the continued listing requirements in the future.
The current situation does not immediately affect the trading of Revelation Biosciences’ common stock or warrants, which are still being traded on The Nasdaq Capital Market under the tickers “REVB” and “REVBW”, respectively. The information provided in this article is based on the company's recent SEC filing.
In other recent news, Revelation Biosciences Inc. has been ordered to pay a court judgment of approximately $7.3 million to LifeSci Capital LLC, following a legal dispute over unpaid banking and advisory fees. Despite this significant financial obligation, Revelation Biosciences confirmed it has sufficient cash reserves to meet the judgment without affecting its ongoing development and clinical trial programs.
Simultaneously, Revelation Biosciences has made an adjustment to the exercise price of its Class C and Class D Common Stock Purchase Warrants, as disclosed in a recent 8-K filing with the Securities and Exchange Commission.
Revere Bank, on the other hand, continues to receive positive attention from Roth/MKM analysts, who have maintained their Buy rating following the announcement of promising Phase 1 trial results for the bank's drug, Gemini. The trial found Gemini to be safe and tolerable across different doses.
Furthermore, Revelation Biosciences announced positive results from a Phase 1 clinical trial for Gemini, its proprietary immune preconditioning therapy. The trial confirmed the safety and tolerability of escalating doses of Gemini, with significant, dose-dependent biomarker changes indicative of the drug's immunostimulatory effect.
InvestingPro Insights
As Revelation Biosciences grapples with compliance issues, real-time data from InvestingPro paints a detailed financial picture of the company. With a market capitalization of just $1.41 million, the company's financial health is under scrutiny. The stock is currently trading near its 52-week low, at only 3.08% of its high, reflecting a significant downtrend in investor confidence. Over the last year, the price total return has plummeted by an alarming 95.96%, indicating a severe bearish trend.
InvestingPro Tips suggest that Revelation Biosciences holds more cash than debt, which could offer some financial flexibility. However, the RSI (Relative Strength Index) indicates that the stock is in oversold territory, which could signal a potential rebound or further declines depending on market sentiment and company performance. Additionally, the company is quickly burning through cash and suffers from weak gross profit margins, which are critical factors that investors must consider. It is also important to note that analysts do not anticipate the company will be profitable this year, and net income is expected to drop, factors that could influence the company's ability to regain compliance with Nasdaq's listing requirements.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips that further delve into Revelation Biosciences' financial state and market performance. These insights are crucial for making informed decisions, especially in light of the company's current challenges. For a deeper dive into the health of Revelation Biosciences, visit https://www.investing.com/pro/REVB to discover the full range of InvestingPro Tips available.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.