WARRINGTON, PA – Windtree Therapeutics Inc. (NASDAQ:WINT), a biotechnology company focused on developing therapeutics for serious and life-threatening diseases, is currently facing compliance challenges with Nasdaq's listing standards, according to a recent 8-K filing. The company, with a market capitalization of just $3.86 million, has seen its stock price plummet nearly 97% over the past year, according to InvestingPro data.
On Monday, the company reported to Nasdaq that it did not meet the majority independent board standard, which requires a majority of directors to be independent, nor the audit committee composition standard, which mandates at least three independent members on the audit committee.
This non-compliance occurred following the appointment of Jed Latkin as President and CEO on Sunday, as he ceased to be an independent director and his new role reduced the number of audit committee members to two. InvestingPro analysis reveals concerning financial metrics, including a weak current ratio of 0.27, indicating the company's short-term obligations exceed its liquid assets.
Windtree received a formal notice on Wednesday, confirming the non-compliance with the listing rules. The company is now exploring options to regain compliance within the grace periods provided by Nasdaq, which extend until the earlier of its next annual stockholders meeting or December 1, 2025, or May 30, 2025, if the next annual meeting occurs before that date.
In addition to the board and audit committee issues, Windtree also received a deficiency letter from Nasdaq on Wednesday due to the company's stock bid price falling below the minimum $1.00 per share over the last 30 consecutive business days, violating the minimum bid price requirement. The company is not eligible for the usual 180-day period to regain compliance due to previous reverse stock splits.
Windtree intends to request a hearing before a Nasdaq Hearings Panel to address the suspension or delisting threat. The request will stay any suspension or delisting actions until the hearing and any potential extension period thereafter. However, there is no certainty that the company will be granted an extension or will be able to comply with the continued listing requirements.
Despite these notices, Windtree's common stock remains listed on The Nasdaq Capital Market under the symbol "WINT" at present. The company's management, led by Latkin, is tasked with navigating these regulatory challenges as they strive to maintain their Nasdaq listing status.
InvestingPro subscribers have access to 15 additional key insights about Windtree's financial health and market position, which could be crucial for investors monitoring this situation. According to InvestingPro's Fair Value analysis, the stock appears to be undervalued at current levels, though significant risks remain.
In other recent news, Windtree Therapeutics has undergone significant executive leadership changes, with CEO Craig Fraser announcing his retirement and Jed Latkin set to succeed him. Concurrently, the company disclosed a potential sale of up to $27.24 million of its common stock to Seven Knots, LLC. Windtree Therapeutics also completed national phase patent filings for its istaroxime treatment, designed to treat cardiogenic shock, in several countries, including a Japanese patent that will remain in effect until 2039.
The company reported positive results from its Phase 2b SEISMiC Extension Study and is preparing for Phase 3 trial readiness in the cardiogenic shock area. Additionally, Jamie McAndrew was appointed as Senior Vice President and Chief Financial Officer, and new independent directors, Saundra Pelletier and Jed Latkin, were added to the board. Analyst firm H.C. Wainwright has maintained a Neutral rating on Windtree Therapeutics.
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