NEWTOWN, PA – Traws Pharma, Inc., a pharmaceutical company, is currently facing the possibility of delisting from The Nasdaq Capital Market after failing to meet the minimum bid price requirement. The company, which trades under the ticker TRAW, was notified by Nasdaq on September 24, 2024, that it had not regained compliance with the minimum bid price of $1.00 per share.
The issue first arose on September 25, 2023, when Nasdaq informed the company of its non-compliance. Traws Pharma was initially given a 180-day grace period to rectify the situation, which was extended by another 180 days until September 23, 2024.
Despite efforts to meet the requirements, including the consideration of a reverse stock split, the bid price of Traws Pharma's common stock did not meet the minimum for ten consecutive business days during this period.
Traws Pharma has announced its intention to request a hearing before the Nasdaq Hearings Panel to present a plan to regain compliance. This request will postpone any suspension or delisting actions until the hearing and any further extensions granted by the panel.
The company's current trading price has risen above the $1 threshold, but there is no certainty that it will maintain this level or meet other Nasdaq listing criteria. The outcome of the upcoming hearing and the company's ability to comply with Nasdaq's requirements will be crucial for its continued listing.
In other recent news, Traws Pharma, Inc. has seen significant changes in its leadership and corporate structure. The company recently welcomed Luba Greenwood to its Board of Directors, following the departure of long-serving Director James J. Marino. Greenwood, a veteran in the life sciences sector, joins the company as it advances its pipeline of therapies for respiratory viral diseases and cancer.
In a major development, the company has also announced a merger with Onconova Therapeutics (NASDAQ:TRAW) and Trawsfynydd Therapeutics. This merger is expected to bolster Traws Pharma's financial position with an estimated cash balance of $28 million.
However, the company has been notified of a potential delisting from the Nasdaq due to an equity shortfall of approximately $105.5 million. Traws Pharma has been given until October 7, 2024, to submit a plan to regain compliance.
In addition, Traws Pharma has engaged KPMG LLP as its new independent registered public accounting firm. The company has also amended its corporate bylaws, lowering the quorum requirement for stockholder meetings.
Finally, the company reported the immediate resignation of Steven M. Fruchtman, its President and Chief Scientific Officer, Oncology. These are the latest developments in Traws Pharma's operations.
InvestingPro Insights
Recent InvestingPro data provides additional context to Traws Pharma's (TRAW) delisting challenges. The company's market capitalization stands at a modest $11.14 million, reflecting its current struggles. TRAW's stock has experienced significant declines, with a 74.85% drop over the past six months and a 45.78% fall in the last three months, underscoring the severity of its price compliance issues.
InvestingPro Tips highlight that TRAW is "trading near 52-week low" and has "not been profitable over the last twelve months," which aligns with the company's difficulties in meeting Nasdaq's listing requirements. The stock's recent performance, having "taken a big hit over the last week" and "fared poorly over the last month," further illustrates the uphill battle Traws Pharma faces in maintaining its listing.
Interestingly, despite these challenges, another InvestingPro Tip suggests that "net income is expected to grow this year," which could potentially factor into the company's plan to regain compliance during its hearing with the Nasdaq Hearings Panel.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for TRAW, providing a deeper understanding of the company's financial health and market position.
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