SAN DIEGO, CA - Revelation Biosciences, Inc. is confronting potential delisting from The Nasdaq Stock Market LLC following receipt of deficiency notices for failing to meet Nasdaq's minimum bid price and stockholders' equity requirements.
The pharmaceutical company, headquartered in San Diego, California, was notified on Monday that its stock did not maintain the minimum bid price of $1.00 per share as stipulated by Nasdaq Listing Rule 5550(a)(2). Revelation Biosciences' situation is compounded by prior reverse stock splits, which preclude the company from being granted the typical 180-day period to regain compliance.
Additionally, a previous notice dated August 14, 2024, indicated the company did not meet the $2,500,000 stockholders' equity threshold required for continued listing on The Nasdaq Capital Market. Although Revelation Biosciences believes its third-quarter financing activities have rectified this issue, the Nasdaq Hearings Panel will review both deficiencies concurrently.
Revelation Biosciences plans to appeal the delisting notices and will request a hearing to present its case for maintaining its listing status. The appeal process will temporarily suspend any delisting actions until the Panel reaches a decision.
Despite these challenges, the trading of Revelation Biosciences' common stock and warrants, under the ticker symbols "REVB" and "REVBW" respectively, remains unaffected on The Nasdaq Capital Market. The company has expressed its intent to pursue all feasible options to comply with Nasdaq's requirements and retain its listing.
In other recent news, Revelation Biosciences has entered into agreements with certain warrant holders to exercise Class D Common Stock Warrants for approximately 2.5 million shares. This strategic move is expected to generate around $3.8 million in gross proceeds, bolstering the company's financial position to support ongoing clinical trials for its product candidates.
In another development, Revelation Biosciences has been ordered to pay a court judgment of approximately $7.3 million to LifeSci Capital LLC over a legal dispute regarding unpaid banking and advisory fees. Despite this, the company confirmed it has sufficient cash reserves to meet the judgment without affecting its ongoing development and clinical trial programs.
On the positive side, Revelation Biosciences reported successful results from a Phase 1 clinical trial for Gemini, its proprietary immune preconditioning therapy. Analysts from Roth Capital Partners and MKM Partners maintained their Buy rating on Revelation Biosciences following these promising results.
InvestingPro Insights
Recent data from InvestingPro sheds light on Revelation Biosciences' (REVB) financial situation, providing context to the company's struggle with Nasdaq listing requirements. The company's market capitalization stands at a mere $1.51 million, reflecting its precarious position.
InvestingPro Tips highlight that REVB is "quickly burning through cash" and "not profitable over the last twelve months," which aligns with the company's difficulties in meeting Nasdaq's stockholders' equity requirement. The stock's performance has been particularly troubling, with InvestingPro data showing a staggering year-to-date price total return of -93.88% and a one-year return of -95.13%. These figures underscore the severity of REVB's minimum bid price challenge.
Despite these headwinds, an InvestingPro Tip notes that REVB "holds more cash than debt on its balance sheet," which could be a small positive as the company navigates its current challenges. Investors seeking a more comprehensive analysis can access 11 additional InvestingPro Tips for REVB, offering deeper insights into the company's financial health and market position.
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