Virpax Pharmaceuticals, Inc. (NASDAQ:VRPX), a Delaware-based pharmaceutical company with a current market capitalization of $1.9 million, has been granted an extension by the Nasdaq Hearings Panel to continue its listing on The Nasdaq Stock Market. This decision, announced on Monday, comes with specific conditions the company must meet to maintain its listing status. According to InvestingPro data, the company faces significant challenges with its financial health score currently rated as FAIR.
The company has until April 1, 2025, to demonstrate compliance with the Nasdaq Listing Rule 5550(b)(1), which requires a minimum of $2.5 million in stockholders' equity. The Panel's decision follows Virpax Pharmaceuticals' submission of a compliance plan, which outlines recent fundraising efforts, cost reduction strategies, and future plans to meet the Equity Rule. InvestingPro analysis reveals concerning metrics, including a current ratio of 0.13, indicating short-term obligations exceed liquid assets.
As part of the Panel's conditions, Virpax Pharmaceuticals is obligated to provide public disclosures by the April deadline detailing the actions taken to regain compliance. These disclosures must include descriptions of transactions, financial measures, income projections, and evidence of compliance with all Nasdaq listing criteria.
In parallel, the company is addressing its non-compliance with the Nasdaq minimum closing bid price requirement. It is currently in a bid price grace period that lasts until April 2, 2025. To resolve this issue, a shareholder meeting is scheduled for January 15, 2025, to vote on a proposed reverse stock split. The company aims to meet the bid price requirement by February 11, 2025.
The stock has experienced significant pressure, with InvestingPro data showing an 88% decline over the past year, though it has shown some recovery with a positive return over the last month. Subscribers can access 5 additional ProTips and comprehensive financial analysis on the platform.
In other recent news, Virpax Pharmaceuticals has made several significant changes to its executive contracts, board of directors, and compliance requirements. The company amended the contracts for CEO Jatinder Dhaliwal and CFO Usama Chaudhry to ensure alignment with legal regulations.
In board changes, Jaydriane Panis was appointed as a new director following the resignation of Gary Herman. The company also lowered its quorum requirement from a majority to 34% of the voting power of the outstanding shares.
In terms of compliance, Virpax regained Nasdaq's independent director and audit committee requirements after the appointment of Esha Randhawa as an independent director. The company also priced a $5 million public offering managed by Spartan Capital Securities, with the proceeds planned for the Investigational New Drug (IND) filing for Probudur™, an injectable local anesthetic for post-operative pain management.
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