PHILADELPHIA, PA - Carisma Therapeutics Inc. (NASDAQ:CARM), a pharmaceutical company with a market capitalization of $19.66 million, has received a notice from the Nasdaq Stock Market indicating that the company is currently not in compliance with the exchange's minimum bid price requirement.
The notice, dated January 6, 2025, was issued because Carisma's common stock, currently trading at $0.47, closed below the $1.00 minimum bid price for 38 consecutive business days. InvestingPro data shows the stock has declined over 82% in the past year, despite a 13% gain year-to-date.
The Nasdaq Listing Rule 5450(a)(1), also known as the Bid Price Rule, mandates that listed companies maintain a minimum bid price of at least $1.00 per share. Despite the notice, Carisma Therapeutics' stock will continue to be traded on The Nasdaq Global Market under the ticker symbol "CARM."
Carisma Therapeutics has been granted a 180-day period, ending on July 7, 2025, to regain compliance with the Bid Price Rule. Compliance can be achieved if the closing bid price of the company's stock reaches or exceeds $1.00 per share for at least ten consecutive business days within this period.
If the company is unable to meet the Bid Price Rule by the July 7 deadline, it may be eligible for an additional 180 days to regain compliance. This extension would require the company to transfer its listing to The Nasdaq Capital Market and satisfy all other initial listing standards of that market, except for the minimum bid price.
While Carisma maintains strong liquidity with a current ratio of 3.23 and holds more cash than debt, InvestingPro analysis indicates the company's overall financial health score is weak at 1.75 out of 10. Carisma Therapeutics may also need to consider a reverse stock split to address the bid price deficiency.
In other recent news, Carisma Therapeutics Inc. has seen significant developments in its operations and strategic direction. The company has appointed Natalie McAndrew as the interim Vice President of Finance, a move expected to strengthen its financial strategy and operations. This follows a master services agreement with Danforth Global, Inc., and Danforth Advisors, LLC. Carisma has also experienced a strategic shift, discontinuing its CT-0525 program due to enrollment challenges and prioritizing in vivo pipeline programs. This restructuring led to a 34% workforce reduction.
Analyst firms such as H.C. Wainwright, Baird, and Evercore ISI have downgraded the stock in response to these changes. However, Carisma continues its collaboration with Moderna (NASDAQ:MRNA), showing promising pre-clinical data for its in vivo CAR-M therapy targeting hepatocellular carcinoma. The company plans to submit an Investigational New Drug application for its liver fibrosis program in the first half of 2026, indicating persistence in advancing its in vivo macrophage engineering platform despite recent setbacks.
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