Conduit Pharmaceuticals Inc. (NASDAQ:CDT), a Delaware-based pharmaceutical company with a market capitalization of just $7.86 million, is facing potential delisting from The Nasdaq Stock Market due to non-compliance with the exchange's minimum bid price requirement. '
The company received a notification from Nasdaq on August 12, 2024, stating that its share price had not met the minimum $1.00 threshold over the preceding 30 business days. According to InvestingPro data, the stock has experienced a dramatic decline of over 98% year-to-date, with shares currently trading at $0.07.
The situation escalated on December 17, 2024, when Nasdaq observed that the bid price of the company's securities had dropped to $0.10 or less for ten consecutive trading days. This triggered Nasdaq's Low Priced Stocks Rule, leading to a determination to delist the company's securities on December 27, 2024, unless Conduit Pharmaceuticals requests a hearing with the Nasdaq Hearings Panel.
InvestingPro analysis reveals concerning financial metrics, including a weak current ratio of 0.12 and an overall Financial Health score labeled as WEAK, with short-term obligations exceeding liquid assets.
Conduit Pharmaceuticals plans to request such a hearing, which would delay any delisting action until the Panel makes a decision. At the hearing, the company will present its plan to regain compliance with Nasdaq's listing rules.
In an attempt to address the issue, stockholders at the company's annual meeting held on Wednesday approved an amendment allowing for a reverse stock split at a ratio of not less than 1-for-10 and not more than 1-for-100, at the discretion of the Board of Directors.
The reverse stock split aims to increase the per-share price to meet Nasdaq's requirements. The stock has fallen significantly from its 52-week high of $5.50, with InvestingPro subscribers having access to 12 additional key insights about the company's financial health and market performance.
In related news from the annual meeting, Simon Fry's appointment as a director and member of the Audit and Compensation Committees became effective. Following this appointment, on Friday, Nasdaq notified Conduit Pharmaceuticals that it had regained compliance with the audit committee listing requirements.
The company's common stock and redeemable warrants will continue to trade on The Nasdaq Global Market and The Nasdaq Capital Market, respectively, under the ticker symbols "CDT" and "CDTTW." This continuation is subject to the company's compliance with other ongoing listing standards and the outcome of the hearing process.
This report is based on a press release statement and the information disclosed in the SEC filing.
In other recent news, Conduit Pharmaceuticals has been actively reshaping its financial landscape.
The company issued a convertible promissory note to A.G.P./Alliance Global Partners (NYSE:GLP), reflecting a deferred commission of $5,737,500, and amended its agreement with Nirland Limited regarding a Senior Secured Promissory Note. In recent developments, the company secured $1.2 million in funding through various financial agreements and initiated an at-the-market offering to raise approximately $3.5 million.
Conduit Pharmaceuticals also announced significant corporate changes, including the appointment of Simon Fry as a new director and amendments to its bylaws. The company restated its financial statements for the first two quarters of 2024 due to a misclassification of deferred commission payable.
Additionally, Conduit Pharmaceuticals amended its financial obligations under a convertible promissory note and secured $2.65 million through a financing agreement with Nirland Limited. The company achieved a milestone by securing a composition of matter patent from IP Australia for its HK-4 Glucokinase Activator, AZD1656. However, it has been notified by Nasdaq of non-compliance with certain listing requirements, potentially leading to the delisting of its common stock. To address this, the company has been given a 180-day grace period to meet the minimum market value requirements.
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