Plus Therapeutics, Inc. (NASDAQ:PSTV), a medical device company, has been granted an extension until March 4, 2025, by the Nasdaq Hearings Panel to meet the exchange's minimum stockholders' equity requirement, as per the latest 8-K filing with the U.S. Securities and Exchange Commission.
The Austin, Texas-based company, previously known as Cytori Therapeutics , Inc., had been notified by Nasdaq on March 8, 2024, that it did not meet the Minimum Stockholders’ Equity Requirement of $2.5 million for continued listing on The Nasdaq Capital Market.
The company also did not satisfy the alternative compliance standards, which include having a market value of listed securities of $35 million or net income from continuing operations of $500,000 in the most recently completed fiscal year or two of the last three fiscal years.
After failing to regain compliance, Plus Therapeutics was at risk of having its common stock suspended from trading and delisted. In response, the company requested and was granted a hearing before a Nasdaq Hearings Panel, which took place on October 22, 2024.
The decision received on October 30, 2024, allows the company additional time to demonstrate compliance with the Minimum Stockholders’ Equity Requirement. However, the Panel's decision is subject to Nasdaq's right to reconsider the terms of this extension.
There is no guarantee that Plus Therapeutics will be able to demonstrate compliance with the Nasdaq listing rules by the given deadline. The company's failure to meet the equity requirement previously and the uncertainty regarding future compliance highlight the ongoing financial challenges it faces.
This development is based on the company's SEC filing and serves as an important notice to investors regarding Plus Therapeutics' listing status and efforts to maintain compliance with Nasdaq's requirements.
In other recent news, Plus Therapeutics has reported progress in its ReSPECT-GBM Phase 1/2 clinical trial for recurrent glioblastoma, a form of brain cancer. The company's lead asset, Rhenium (186Re) Obisbemeda, continues to demonstrate a favorable safety profile and potential efficacy in patients.
The trial has expanded to two additional leading U.S. academic medical centers, potentially accelerating the completion of both Phase 1 and Phase 2 arms of the study.
In financial news, Plus Therapeutics reported a Q2 revenue of $1.3 million, falling short of Ascendiant Capital's anticipated $1.6 to $1.7 million range. This led the firm to revise its 2024 revenue estimates for the company from $7 million to $5 million. Despite facing potential delisting from The Nasdaq Stock Market due to an equity shortfall, the company plans to appeal the determination.
In governance developments, Plus Therapeutics shareholders elected six members to the Board of Directors and approved the fourth amendment and restatement of the company's 2020 Stock Incentive Plan.
The company also reported a solid financial position with a cash and investments balance of $8.4 million and anticipated grant revenue of $6 million to $7 million for the year. In addition, Plus Therapeutics secured a $3 million award from the U.S. Department of Defense for a pediatric brain cancer trial.
These are recent developments for Plus Therapeutics.
InvestingPro Insights
Plus Therapeutics' (NASDAQ:PSTV) recent Nasdaq listing extension comes amid significant financial challenges, as revealed by InvestingPro data. The company's market capitalization stands at a modest $7.75 million, reflecting its current struggles. InvestingPro Tips highlight that PSTV is "quickly burning through cash" and has "short term obligations exceed[ing] liquid assets," which aligns with the company's difficulty in meeting Nasdaq's minimum stockholders' equity requirement.
The company's financial health is further underscored by its negative gross profit margin of -96.46% and an operating income margin of -256.04% for the last twelve months as of Q2 2024. These figures support the InvestingPro Tip that PSTV "suffers from weak gross profit margins" and is "not profitable over the last twelve months."
Despite these challenges, PSTV has shown a substantial revenue growth of 113.2% in the last twelve months. However, this growth hasn't translated into profitability, as analysts do not anticipate the company will be profitable this year, according to another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further insights into PSTV's financial situation and market performance.
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