FARMINGDALE, N.Y. - Enzo Biochem, Inc. (NYSE:ENZ), a life sciences company, is currently facing non-compliance issues with the New York Stock Exchange (NYSE) continued listing standards. With a current market capitalization of $34.22 million and trading at $0.65, near its 52-week low, the company falls significantly below NYSE requirements. According to InvestingPro analysis, the stock appears undervalued despite its challenges, with technical indicators suggesting oversold conditions. The NYSE has notified the company that its average market capitalization fell below the required $50 million over a 30 trading-day period, and its last reported stockholder's equity as of October 31, 2024, was also beneath the threshold. Additionally, Enzo Biochem's common stock has been trading at an average closing price of less than $1.00, which does not meet the NYSE's minimum price criteria.
Despite these challenges, the notice of non-compliance does not imply an immediate delisting of Enzo Biochem's common stock. The company has been granted an 18-month period to address the market capitalization and stockholder's equity deficiencies, and a six-month period to remedy the average closing stock price issue. Financial data from InvestingPro shows the company maintains a strong current ratio of 2.55, indicating sufficient liquid assets to meet short-term obligations. However, with revenue of $30.31 million and negative EBITDA of $9.19 million in the last twelve months, the company faces significant hurdles. To regain compliance with the average stock price requirement, the company's closing share price must reach at least $1.00 on the last trading day of any calendar month within the six-month cure period, and must also maintain an average closing price of at least $1.00 over the 30 trading-day period ending on that day.
Enzo Biochem has until January 23, 2025, to notify the NYSE of its intention to submit a plan by February 21, 2025, outlining how it will return to compliance with the NYSE's listing standards. The company is exploring all available options to resolve the deficiencies identified by the NYSE. Subscribers to InvestingPro can access additional insights, including 7 more ProTips and detailed financial metrics that could help assess the company's turnaround potential.
The firm, which has been in operation for over 45 years, conducts its primary business through its Life Sciences division, Enzo Life Sciences. This division specializes in labeling and detection technologies ranging from DNA to whole cell analysis and offers a wide array of products, such as antibodies, genomic probes, assays, biochemicals, and proteins. Enzo Biochem monetizes its technology through sales via its global distribution network and licensing.
The information in this article is based on a press release statement from Enzo Biochem.
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