SAN FRANCISCO - GT Biopharma Inc., a pharmaceutical company, is in jeopardy of being delisted from the Nasdaq Stock Market after failing to meet the minimum stockholders' equity requirement. The company, which trades under the ticker GTBP, was notified by Nasdaq on November 21, 2024, that its stockholders' equity had fallen below the required minimum of $2.5 million.
The notice from Nasdaq, which does not immediately affect the trading of GT Biopharma's common stock, comes after the company reported its equity status in the quarterly report for the period ending September 30, 2024. The company also does not meet the alternative compliance standards based on the market value of listed securities or net income from continuing operations.
GT Biopharma has until January 6, 2025, to submit a plan to Nasdaq outlining how it will regain and maintain compliance with the equity requirements. If Nasdaq accepts the plan, the company may be granted up to 180 days from the original notification date to demonstrate compliance. In the event that the plan is rejected, GT Biopharma will have the opportunity to appeal before a Nasdaq Hearings Panel.
The company has expressed its intention to provide Nasdaq with a compliance plan within the specified timeframe. However, there is no certainty that the plan will be accepted or that GT Biopharma will be able to meet the continued listing requirements within any extension period granted by Nasdaq.
In other recent news, GT Biopharma, Inc. has made significant strides in its development of a new cancer treatment, GTB-3650. The company has inked a clinical trial agreement with the University of Minnesota, sponsoring a phase 1 clinical trial for this Tri-Specific Killer Engager aimed at treating high-risk myelodysplastic syndromes, refractory/relapsed acute myeloid leukemia, and minimal residual disease in AML.
The University will serve as the sponsor investigator for the Investigational New Drug application and the study, with GT Biopharma providing approximately $2 million in funding and resources over three years.
In addition to these developments, GT Biopharma has announced a role change for Dr. Jeffrey Miller, transitioning him from Consulting Chief Medical (TASE:PMCN) Officer and Consulting Chief Scientific Officer to Consulting Senior Medical Director. This change aligns with a request from his primary employer, the University of Minnesota.
Furthermore, GT Biopharma has received clearance from the U.S. Food and Drug Administration for its Investigational New Drug application for GTB-3650, allowing the initiation of a Phase 1 clinical trial. The company has also initiated a registered direct offering and concurrent private placement, expecting to yield approximately $3.2 million in gross proceeds through the sale of 740,000 shares of common stock.
InvestingPro Insights
GT Biopharma's struggle to maintain its Nasdaq listing is further illuminated by recent financial data and insights from InvestingPro. The company's market capitalization stands at a modest $6.46 million, reflecting its current challenges. InvestingPro Tips indicate that GT Biopharma holds more cash than debt on its balance sheet, which could be a potential asset in its efforts to regain compliance with Nasdaq's equity requirements.
However, the company faces significant headwinds. InvestingPro data shows that GT Biopharma's operating income for the last twelve months as of Q3 2024 was -$13.77 million, underscoring its profitability issues. This aligns with an InvestingPro Tip noting that the company is not profitable over the last twelve months and that analysts do not anticipate profitability this year.
Despite these challenges, GT Biopharma has shown a strong return of 36.06% over the last three months, according to InvestingPro data. This recent performance could be a positive factor in the company's plan to regain Nasdaq compliance.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for GT Biopharma, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.