Organovo Holdings, Inc. (NASDAQ:ONVO), a biotech firm specializing in biological products with a current market capitalization of just $5.92 million, announced on Thursday that it has received a delisting warning from The Nasdaq Stock Market due to its failure to meet the minimum bid price requirement.
The company's stock currently trades at $0.39, according to InvestingPro data. The San Diego-based company, incorporated in Delaware, has been unable to maintain the required $1 per share bid price over the last 30 consecutive business days, as mandated by Nasdaq Listing Rule 5550(a)(2).
The initial notice from Nasdaq was received on July 18, 2024, granting Organovo a 180-day period to regain compliance, which ended on January 14, 2025. Following this period, Nasdaq notified the company on Wednesday that it had not achieved compliance and was not eligible for an additional compliance period due to its noncompliance with the initial listing requirements on The Nasdaq Capital Market. InvestingPro analysis reveals concerning financial metrics, with the company's overall Financial Health Score rated as WEAK at 1.37 out of 10.
Organovo intends to request a hearing before a Nasdaq Hearings Panel to avoid delisting. This request will automatically stay any delisting actions until the hearing and any extension period granted by the Panel, which could extend up to July 15, 2025. During this time, Organovo's common stock will continue to trade on The Nasdaq Capital Market under the ticker symbol ONVO.
The company plans to present a compliance strategy to the Panel, which may include a reverse stock split to meet the minimum bid price requirement. However, there is no guarantee that the Panel will grant an extension or that Organovo will be able to regain compliance with the continued listing requirements.
This development is a forward-looking statement and, like all such statements, involves risks and uncertainties that could cause actual results to differ materially from those anticipated. The risks are particularly evident in the company's performance metrics, with a significant 66.51% decline in stock price over the past year and negative EBITDA of $12.49 million in the last twelve months.
InvestingPro subscribers have access to additional insights, including 8 more key tips about Organovo's financial position and market performance. Organovo has made it clear that it cannot assure it will meet the bid price requirement or Nasdaq's compliance standards in the future, nor can it predict the outcome of its appeal for relief from delisting.
The information reported is based on a recent SEC filing by Organovo Holdings, Inc.
In other recent news, Organovo Holdings, Inc. has made significant advancements, including the appointment of Norman Staskey as Chief Financial Officer. Staskey brings extensive experience in capital markets and mergers and acquisitions from his previous roles at Danforth Advisors and EY. The company also presented promising Phase 2 results for their lead drug, FXR314, which demonstrated a significant reduction in liver fat content and a favorable safety profile.
In addition to these developments, Organovo expanded its equity incentive plan by 1,775,000 shares after gaining stockholder approval. This move is part of the company's strategy to incentivize and retain its employees.
In other corporate actions, Organovo's stockholders elected Alison Tjosvold Milhous and Vaidehi Joshi as Class I directors and ratified the appointment of Rosenberg Rich Baker Berman P.A. as the independent registered public accounting firm for the fiscal year ending March 31, 2025.
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