NKGen Biotech, Inc., a company specializing in biological products, has received a notice from the Nasdaq Stock Market indicating non-compliance with the minimum market value requirement for continued listing. The notice, dated December 2, 2024, states that NKGen Biotech's market value of publicly held shares has fallen below the required threshold of $15 million over the past 30 days.
This development comes as the company's stock has declined over 82% year-to-date, with its current market capitalization standing at approximately $17.54 million.
The Nasdaq Listing Rule 5450(b)(2)(C) mandates that the market value of publicly held shares must meet or exceed $15 million. Despite this setback, the current status of NKGen Biotech's securities on Nasdaq remains unaffected.
According to InvestingPro analysis, the company shows concerning financial health indicators, with a weak overall score of 1.49 and a current ratio of just 0.02, suggesting significant liquidity challenges. The company has expressed its intention to monitor the market value and explore potential solutions to regain compliance.
NKGen Biotech has been provided a 180-day grace period, ending on June 2, 2025, to address the issue. During this period, the company must achieve and maintain a market value of publicly held shares of at least $15 million for a minimum of ten consecutive business days to satisfy Nasdaq's requirements.
Notably, the stock has shown recent momentum with a 30.84% gain over the past week, trading at $0.50 per share.Want deeper insights into NKGen Biotech's financial health and market performance? InvestingPro subscribers have access to over 8 additional ProTips and comprehensive financial metrics to make informed investment decisions.
Should NKGen Biotech fail to meet the market value criterion by the end of the compliance period, it risks delisting from the Nasdaq exchange. The company would then have the opportunity to appeal the decision before a Nasdaq hearings panel. However, the outcome of any such appeal cannot be guaranteed.
In other recent news, NKGen Biotech has been navigating a series of significant developments. The biotechnology company has been addressing a Nasdaq compliance issue due to a delay in filing its quarterly report. Despite this, NKGen Biotech successfully regained compliance with Nasdaq's minimum market value requirement, averting potential delisting. The company has also proposed transitioning to the Nasdaq Capital Market in response to potential delisting due to non-compliance with certain listing requirements.
NKGen Biotech issued approximately 492,800 shares of common stock through the conversion of convertible notes, a strategic move that may impact existing shareholders due to dilution. The company also secured $2.75 million in financing through a promissory note with CFIC-2015 NV Family Investments, enabling conversion of outstanding principal and interest into common stock at $2.00 per share.
On the clinical front, NKGen Biotech reported encouraging preliminary results from its Phase 1/2a clinical trial of troculeucel, a cell therapy for Alzheimer's disease, indicating cognitive improvements in a majority of patients treated with the highest dose. In terms of governance, NKGen Biotech saw the resignation of three directors and the appointment of two new ones.
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