NKGen Biotech, Inc., a biotechnology company specializing in biological products, announced today that it will appeal the Nasdaq's decision to delist its common stock from the Nasdaq Global Market. The company received a notification on September 10, 2024, citing non-compliance with the market value and financial reporting requirements.
The Nasdaq Listing Rule 5450(b)(2)(A), which mandates a minimum market value of listed securities of $50 million, was not met by NKGen Biotech within the given cure period. Additionally, the company was noted for not adhering to Nasdaq Listing Rule 5250(c)(1), which involves the timely filing of periodic financial reports.
In response, NKGen Biotech intends to file an appeal by the end of the business day, proposing a plan to regain compliance. This plan includes the submission of an application to transition from the Nasdaq Global Market to the Nasdaq Capital Market, where the minimum market value requirement is $35 million as per Nasdaq Listing Rule 5550(b)(2). The company believes this move could be beneficial in meeting the continued listing standards.
Moreover, NKGen Biotech has addressed the issue of delayed financial reporting by filing its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, with the U.S. Securities and Exchange Commission on September 12, 2024. This action brings the company back into compliance with the financial reporting rule of Nasdaq.
The announcement was made in a filing with the Securities and Exchange Commission on Tuesday by NKGen Biotech's Chief Executive Officer, Paul Y. Song. The company's common stock and warrants are currently listed under the symbols NKGN and NKGNW, respectively, on the Nasdaq. The outcome of the appeal will determine the future listing status of NKGen Biotech's securities. This report is based on a press release statement.
In other recent news, NKGen Biotech, a biotechnology firm, is facing potential delisting from the Nasdaq due to non-compliance with certain listing requirements, including a failure to meet the minimum Market Value of Listed Securities.
Despite filing an overdue 10-Q and regaining compliance with filing requirements, the company's securities are still at risk of suspension. NKGen Biotech intends to appeal this determination and request a suspension stay, but cautions there is no guarantee of a favorable outcome.
The company also received a notice concerning non-compliance with the minimum market value of publicly held shares requirement and is exploring options to regain compliance by March 2025. Meanwhile, NKGen Biotech reported promising results from its Phase 1/2a clinical trial of troculeucel, a cell therapy for Alzheimer's disease, with preliminary data indicating cognitive improvements in a majority of patients treated with the highest dose.
NKGen Biotech has also amended its forward purchase agreement, increasing both financial commitment and share consideration to Meteora Capital Partners. The firm secured $2.75 million in financing through a promissory note with CFIC-2015 NV Family Investments, LLC, allowing conversion of outstanding principal and interest into common stock at $2.00 per share.
Lastly, the company's Chief Operating Officer, Pierre Gagnon, has stepped down from his role but will continue to serve as an advisor until November 2024.
InvestingPro Insights
As NKGen Biotech, Inc. navigates the challenges of meeting Nasdaq's listing standards, InvestingPro data reveals a market capitalization of $19.2 million, a reflection of the company's current valuation in the market. The firm's financial health is further elucidated by a negative P/E ratio for the last twelve months as of Q2 2024, indicating the company is not generating profits relative to its share price. Additionally, the company's stock price is currently trading near its 52-week low, which could be a point of concern for investors.
InvestingPro Tips for NKGen Biotech highlight several critical points for potential investors. The company suffers from weak gross profit margins and is not profitable over the last twelve months. Moreover, its short-term obligations exceed its liquid assets, which could pose a risk in managing its financial obligations. For those closely monitoring NKGen Biotech's financial health and stock performance, there are additional InvestingPro Tips available that may provide deeper insights into the company's status.
For investors and analysts considering NKGen Biotech's future prospects, the InvestingPro platform offers further tips and analytics, with a total of 8 additional InvestingPro Tips that could guide decision-making. As the company strives to regain compliance with Nasdaq regulations, these insights may prove invaluable in assessing the potential risks and opportunities associated with NKGen Biotech's stock.
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