PALO ALTO, Calif. - 180 Life Sciences Corp. (NASDAQ: ATNF), a clinical-stage biotechnology company, has been granted an extension by the Nasdaq Listing Qualifications Panel to remain listed on The Nasdaq Stock Market.
The decision comes with specific conditions that the company must meet by July 31, 2024, including a detailed public disclosure of actions taken to comply with Nasdaq’s listing rules and evidence of sustained compliance with the minimum stockholders’ equity requirement.
The company is currently not in adherence with Nasdaq Listing Rule 5550(b)(1), which necessitates maintaining a minimum stockholders’ equity of $2.5 million. Previously, on November 15, 2023, the Nasdaq staff notified 180 Life Sciences of its non-compliance with this Equity Rule. Although the company was given an extension until May 13, 2024, to regain compliance, it was unsuccessful.
Consequently, on May 14, 2024, the company received a notice of delisting, which was scheduled to take effect on May 23, 2024. However, after appealing this decision on May 17, 2024, the delisting action was stayed, pending the Hearings Panel's final decision, which has now been provided.
Interim Chief Executive Officer Blair Jordan expressed confidence that the extension will allow adequate time for the company to execute its plan to meet Nasdaq’s requirements. Nonetheless, there is no guarantee that 180 Life Sciences will be able to meet the imposed deadlines or conditions or regain full compliance with the continued listing standards.
The company, which focuses on developing therapies for chronic pain, inflammation, and fibrosis, is navigating the complexities of clinical development and regulatory approval processes. It is also evaluating strategic transactions and their potential impact on shareholder value.
The information in this article is based on a press release statement from 180 Life Sciences Corp.
InvestingPro Insights
As 180 Life Sciences Corp. (ATNF) grapples with the challenge of staying listed on the Nasdaq Stock Market, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, the company's market capitalization stands at a modest $1.41 million. The financials reveal a concerning picture, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -0.16, indicating that the company is not generating profits relative to its share price.
An InvestingPro Tip that stands out in relation to the company's current situation is the fact that analysts do not expect 180 Life Sciences to be profitable this year. This aligns with the company's reported operating income, which shows a significant adjusted loss of $10.77 million over the same period. Additionally, the company's stock has suffered a substantial year-to-date price total return of -63.02%, reflecting the uphill battle it faces to meet Nasdaq's conditions and regain investor confidence.
Another notable InvestingPro Tip is that the company's short-term obligations exceed its liquid assets, which could further complicate its efforts to meet the Nasdaq's equity requirement. With these financial challenges, the company's strategic moves and the outcome of its clinical studies will be critical to watch in the coming months.
For investors seeking a deeper dive into the financials and future prospects of 180 Life Sciences Corp., InvestingPro offers a wealth of additional tips. Currently, there are 9 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/ATNF. For those considering a subscription, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing even more in-depth analysis and data to inform investment decisions.
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