Viracta Therapeutics, Inc. is confronting the risk of being delisted from The Nasdaq Stock Market LLC after failing to meet the minimum bid price and stockholders' equity requirements set by Nasdaq's listing rules. The pharmaceutical company, based in Cardiff, California, currently trades at $0.14 per share with a market capitalization of just $5.68 million.
According to InvestingPro analysis, the company has been notified that its stock price has not maintained the minimum $1.00 bid per share, and its stockholders' equity has fallen below the required $2.5 million threshold. InvestingPro's Fair Value analysis suggests the stock is currently undervalued despite its challenges.
The initial notification of non-compliance with the bid price requirement was received on May 28, 2024, beginning a 180-day period for Viracta to regain compliance, which ended on November 25, 2024. The company's stock has struggled significantly, with InvestingPro data showing a 79% decline over the past six months and a current price 89% below its 52-week high of $1.31.
Subsequently, on November 21, 2024, Viracta was informed of its non-compliance with the stockholders' equity requirement. Consequently, on November 26, 2024, Nasdaq issued a determination to delist the company's shares.
Viracta plans to appeal the delisting decision and will request a hearing before the Nasdaq Listing Qualifications Panel. During the appeal process, the delisting action will be stayed. The Panel may grant Viracta up to an additional 180 days from November 26, 2024, to meet the listing requirements. However, there is no assurance that the Panel will provide an extension or that Viracta will be able to regain compliance.
The company, previously known as Mosaic Pharmaceuticals Inc. and Sunesis Pharmaceuticals (NASDAQ:VIRX) Inc., is recognized in the pharmaceutical preparations industry under the SIC code 2834 and is incorporated in Delaware. The fiscal year-end for Viracta Therapeutics is December 31.
Viracta's forward-looking statements indicate its intention to submit an appeal within the required timeframe and its efforts to regain and sustain compliance with Nasdaq's requirements. Investors are cautioned to consider the risks outlined in the company's latest quarterly report filed on November 13, 2024, and not to place undue reliance on these projections. Viracta has expressed no intention of updating these forward-looking statements unless required by law.
This article is based on a press release statement filed with the SEC.
In other recent news, Viracta Therapeutics, Inc. has been notified by the Nasdaq Stock Market of a potential delisting due to not meeting the minimum stockholders' equity requirement. The company has until January 6, 2025, to submit a compliance plan to regain and maintain compliance with the listing requirements.
In response to these challenges, Viracta has made significant changes to its operational strategy, including a workforce reduction of approximately 42% to concentrate on its Nana-val development program for EBV-positive peripheral T-cell lymphoma (PTCL).
The company has also resized its Board of Directors from ten to six members to streamline operations and reduce costs. These strategic shifts follow promising results from the NAVAL-1 trial stages 1 and 2, showing substantial antitumor activity. Viracta plans to initiate a Randomized Controlled Trial in 2025, potentially supporting a New Drug Application filing in 2026.
RBC Capital has maintained an Outperform rating on Viracta's stock amid these developments. Viracta also appointed Michael Faerm as its new Chief Financial Officer. The company reported cash reserves of around $30 million as of the second quarter of 2024.
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