NKGen Biotech, Inc., a biotechnology firm specializing in organic merchandise, introduced at the moment that it’s going to attraction the Nasdaq’s determination to delist its frequent inventory from the Nasdaq World Market. The corporate acquired a notification on September 10, 2024, citing non-compliance with the market worth and monetary reporting necessities.
The Nasdaq Itemizing Rule 5450(b)(2)(A), which mandates a minimal market worth of listed securities of $50 million, was not met by NKGen Biotech inside the given remedy interval. Moreover, the corporate was famous for not adhering to Nasdaq Itemizing Rule 5250(c)(1), which includes the well timed submitting of periodic monetary reviews.
In response, NKGen Biotech intends to file an attraction by the top of the enterprise day, proposing a plan to regain compliance. This plan contains the submission of an utility to transition from the Nasdaq World Market to the Nasdaq Capital Market, the place the minimal market worth requirement is $35 million as per Nasdaq Itemizing Rule 5550(b)(2). The corporate believes this transfer may very well be helpful in assembly the continued itemizing requirements.
Furthermore, NKGen Biotech has addressed the problem of delayed monetary reporting by submitting its Quarterly Report on Kind 10-Q for the quarter ended June 30, 2024, with the U.S. Securities and Trade Fee on September 12, 2024. This motion brings the corporate again into compliance with the monetary reporting rule of Nasdaq.
The announcement was made in a submitting with the Securities and Trade Fee on Tuesday by NKGen Biotech’s Chief Government Officer, Paul Y. Track. The corporate’s frequent inventory and warrants are at the moment listed beneath the symbols NKGN and NKGNW, respectively, on the Nasdaq. The end result of the attraction will decide the long run itemizing standing of NKGen Biotech’s securities. This report relies on a press launch assertion.
In different current information, NKGen Biotech, a biotechnology agency, is dealing with potential delisting from the Nasdaq as a consequence of non-compliance with sure itemizing necessities, together with a failure to satisfy the minimal Market Worth of Listed Securities.
Regardless of submitting an overdue 10-Q and regaining compliance with submitting necessities, the corporate’s securities are nonetheless susceptible to suspension. NKGen Biotech intends to attraction this dedication and request a suspension keep, however cautions there is no such thing as a assure of a good final result.
The corporate additionally acquired a discover regarding non-compliance with the minimal market worth of publicly held shares requirement and is exploring choices to regain compliance by March 2025. In the meantime, NKGen Biotech reported promising outcomes from its Part 1/2a medical trial of troculeucel, a cell remedy for Alzheimer’s illness, with preliminary knowledge indicating cognitive enhancements in a majority of sufferers handled with the best dose.
NKGen Biotech has additionally amended its ahead buy settlement, growing each monetary dedication and share consideration to Meteora Capital Companions. The agency secured $2.75 million in financing by way of a promissory word with CFIC-2015 NV Household Investments, LLC, permitting conversion of excellent principal and curiosity into frequent inventory at $2.00 per share.
Lastly, the corporate’s Chief Working Officer, Pierre Gagnon, has stepped down from his position however will proceed to function an advisor till November 2024.
InvestingPro Insights
As NKGen Biotech, Inc. navigates the challenges of assembly Nasdaq’s itemizing requirements, InvestingPro knowledge reveals a market capitalization of $19.2 million, a mirrored image of the corporate’s present valuation available in the market. The agency’s monetary well being is additional elucidated by a damaging P/E ratio for the final twelve months as of Q2 2024, indicating the corporate shouldn’t be producing income relative to its share value. Moreover, the corporate’s inventory value is at the moment buying and selling close to its 52-week low, which may very well be some extent of concern for traders.
InvestingPro Suggestions for NKGen Biotech spotlight a number of important factors for potential traders. The corporate suffers from weak gross revenue margins and isn’t worthwhile over the past twelve months. Furthermore, its short-term obligations exceed its liquid property, which might pose a threat in managing its monetary obligations. For these intently monitoring NKGen Biotech’s monetary well being and inventory efficiency, there are extra InvestingPro Suggestions accessible which will present deeper insights into the corporate’s standing.
For traders and analysts contemplating NKGen Biotech’s future prospects, the InvestingPro platform gives additional ideas and analytics, with a complete of 8 extra InvestingPro Suggestions that might information decision-making. As the corporate strives to regain compliance with Nasdaq laws, these insights could show invaluable in assessing the potential dangers and alternatives related to NKGen Biotech’s inventory.
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