CARLSBAD, CA - Qualigen Therapeutics, Inc. has received a notice from The Nasdaq Stock Market LLC indicating the company is not in compliance with a listing rule requiring a minimum number of independent directors on its Audit Committee. The notification, received on Monday, follows the resignation of Matt Korenberg from the Board of Directors and the Audit Committee on October 3, 2024.
The Nasdaq Listing Rule 5605 necessitates that the Audit Committee is composed of at least three independent directors. Currently, Qualigen's Audit Committee has two members, Robert Lim and Cody Price. The company has been granted a cure period to resolve this noncompliance issue. The deadline for compliance is the earlier of the next annual shareholders’ meeting or October 5, 2025, or April 1, 2025, if the next annual shareholders' meeting occurs before that date.
Qualigen Therapeutics, which operates in the pharmaceutical preparations industry, is actively seeking to appoint an additional independent director to its Audit Committee within the provided cure period. The notice does not affect the current listing or trading of Qualigen’s common stock on The Nasdaq Capital Market.
This development comes as the company, formerly known as Ritter Pharmaceuticals Inc, navigates the regulatory requirements to maintain its listing status. Qualigen, with its headquarters at 5857 Owens Avenue, Suite 300, Carlsbad, California, is known for its focus on life sciences and pharmaceutical development.
In other recent news, Qualigen Therapeutics has been actively managing its financial affairs. The company priced its public offering at $0.13 per share, aiming to raise approximately $3.46 million. Furthermore, Qualigen issued a $1.25 million loan to Marizyme and secured a $2 million cash infusion via a non-convertible senior note. The original principal balance of $3.3 million from Qualigen's 8% Senior Convertible Debenture was fully converted into the company's common stock.
Qualigen Therapeutics has also seen significant changes in its leadership. CEO Michael Poirier and CFO Christopher Lotz have resigned, with Kevin Richardson stepping in as Interim CEO and CFO, and Campbell Becher appointed as President. The company's board of directors has also seen changes, with the resignation of Matt Korenberg and the appointment of new members.
The company has received an extension to remain listed on The Nasdaq Capital Market until November 19, 2024, and is diligently working to meet all applicable listing criteria. As part of its ongoing efforts, Qualigen appointed WithumSmith+Brown, PC as its new independent registered public accounting firm, replacing Baker Tilly US, LLP. These are the recent developments at Qualigen Therapeutics.
InvestingPro Insights
As Qualigen Therapeutics (QLGN) works to address its Nasdaq compliance issue, recent InvestingPro data provides additional context for investors. The company's market capitalization stands at a modest $4.73 million, reflecting its current challenges. Despite a significant 12.03% return over the last week, QLGN's stock price remains at only 19.64% of its 52-week high, indicating substantial volatility.
InvestingPro Tips highlight some concerns for the company. Qualigen suffers from weak gross profit margins and is not profitable over the last twelve months, with a negative gross profit of $3.87 million. Additionally, analysts do not anticipate the company will be profitable this year. These financial challenges underscore the importance of Qualigen's efforts to maintain its Nasdaq listing and strengthen its governance structure.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide valuable insights into Qualigen's financial health and market position.
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