AIM ImmunoTech Announces Notification of Noncompliance with Additional NYSE American Continued Listing Standards

Rhea-AI Summary

AIM ImmunoTech (NYSE: AIM) received a notice from NYSE American on December 11, 2024, indicating noncompliance with continued listing standards. The company fails to meet requirements for stockholders' equity of $4 million (Section 1003(a)(ii)) and $6 million (Section 1003(a)(iii)) after reporting losses in its five most recent fiscal years.

The stock will continue trading under 'AIM' with an added '.BC' designation indicating 'below compliance'. The company must submit a compliance plan by January 10, 2025, demonstrating how it will meet standards by June 11, 2026. If the plan is not submitted, accepted, or if progress isn't maintained, AIM could face delisting procedures.

Positive

• Stock continues trading on NYSE American during compliance period
• Company maintains right to appeal any delisting determination

Negative

• Failed to meet minimum $4M and $6M stockholders' equity requirements
• Reported losses for five consecutive fiscal years
• Risk of potential delisting if compliance plan fails
• Added '.BC' designation indicating below compliance status

Insights

Financial Analyst

This NYSE American listing compliance issue raises serious concerns about AIM ImmunoTech's financial health. With a small market cap of just $13.4 million and consistent losses over five fiscal years, the company faces significant challenges. The requirement to maintain stockholders' equity of $6 million while reporting continued losses highlights the company's precarious financial position. The ".BC" designation will likely impact investor confidence and could affect trading liquidity. While the company has until June 2026 to regain compliance, the immediate challenge is presenting a credible compliance plan by January 10, 2025. Without substantial improvement in financial performance or a significant capital raise, the delisting risk remains high, which could force the company to trade on less prestigious exchanges.

Legal Expert

The notification triggers several critical regulatory obligations and deadlines. The January 10, 2025 deadline for submitting a compliance plan is particularly pressing. While the company maintains its NYSE American listing during the remediation period, the ".BC" designation carries disclosure obligations and potential implications for securities laws compliance. The 18-month compliance period until June 2026 provides a reasonable runway, but failure to meet continued listing standards could trigger forced delisting procedures under Section 1010 and Part 12 of the Company Guide. Investors should note that while appeal rights exist, successful appeals typically require demonstrating concrete progress toward compliance.

A Plan for Compliance has been Undertaken

OCALA, Fla., Dec. 17, 2024 (GLOBE NEWSWIRE) -- AIM ImmunoTech Inc. (NYSE American: AIM) (“AIM” or the “Company”), announced today that it received a notice (the “Notice”) from the NYSE American LLC (the “NYSE American”) dated December 11, 2024, notifying the Company that it is no longer in compliance with NYSE American continued listing standards. This is an issue previously disclosed in our most recent Report on Form 10-Q. Specifically, the letter states that the Company is not in compliance with the continued listing standards set forth in Sections 1003(a)(ii) and 1003(a)(iii) of the NYSE American Company Guide (the “Company Guide”). Section 1003(a)(ii) requires a listed company to have stockholders’ equity of $4 million or more if the listed company has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years. Section 1003(a)(iii) requires a listed company to have stockholders’ equity of $6 million or more if the listed company has reported losses from continuing operations and/or net losses in its five most recent fiscal years. The Company has reported losses from continuing operations and/or net losses in its five most recent fiscal years.

The Notice has no immediate impact on the listing of the Company’s shares of common stock, par value $0.001 per share (the “Common Stock”), which will continue to be listed and traded on the NYSE American during the period in which the Company implements its plan to become compliant with these NYSE American continued listing standards, subject to the Company’s compliance with the other listing requirements of the NYSE American. The Common Stock will continue to trade under the symbol “AIM”, but will have an added designation of “.BC” to indicate the status of the Common Stock as “below compliance”. The Notice does not affect the Company’s ongoing business operations or its reporting requirements with the Securities and Exchange Commission.

The Company must submit a plan of compliance (the “Plan”) by January 10, 2025, addressing how it intends to regain compliance with Sections 1003(a)(ii) and (iii) of the Company Guide by June 11, 2026. The Company has begun to prepare its Plan for submission to the NYSE American by the January 10, 2025 deadline.

If the NYSE American accepts the Company’s Plan, the Company will be able to continue its listing during its implementation of the Plan and will be subject to continued periodic review by the NYSE American staff. If the Plan is not submitted, or not accepted, or is accepted but the Company is not in compliance with the continued listing standards by June 11, 2026, or if the Company does not make progress consistent with the Plan during such period, the Company will be subject to delisting procedures as set forth in the Company Guide. The Company may appeal a staff delisting determination in accordance with Section 1010 and Part 12 of the Company Guide.

About AIM ImmunoTech Inc.

AIM ImmunoTech Inc. is an immuno-pharma company focused on the research and development of therapeutics to treat multiple types of cancers, immune disorders and viral diseases, including COVID-19. The Company’s lead product is a first-in-class investigational drug called Ampligen® (rintatolimod), a dsRNA and highly selective TLR3 agonist immuno-modulator with broad spectrum activity in clinical trials for globally important cancers, viral diseases and disorders of the immune system.

For more information, please visit aimimmuno.com and connect with the Company on X, LinkedIn, and Facebook.

Cautionary Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “continue,” “believe,” “potential,” “upcoming” and other variations thereon and similar expressions (as well as other words or expressions referencing future events or circumstances) are intended to identify forward-looking statements. Many of these forward-looking statements involve a number of risks and uncertainties. There can be no assurance that the Company will be able to achieve compliance with the NYSE American’s continued listing standards within the required timeframe. The Company urges investors to consider specifically the various risk factors identified in its most recent Form 10-K, and any risk factors or cautionary statements included in any subsequent Form 10-Q or Form 8-K, filed with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Among other things, for those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA. The Company does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof.

FAQ

Why did AIM ImmunoTech receive a NYSE American noncompliance notice on December 11, 2024?

AIM received the notice for failing to maintain stockholders' equity requirements of $4M and $6M after reporting losses in its five most recent fiscal years.

What is the deadline for AIM ImmunoTech to submit its compliance plan to NYSE American?

AIM must submit its compliance plan by January 10, 2025.

How long does AIM ImmunoTech have to regain compliance with NYSE American listing standards?

AIM has until June 11, 2026, to regain compliance with the NYSE American listing standards.

What happens to AIM stock trading status during the compliance period?

AIM stock continues trading on NYSE American under the symbol 'AIM' with an added '.BC' designation indicating 'below compliance'.

What are the consequences if AIM fails to meet NYSE American compliance requirements?

If AIM fails to submit an acceptable plan or meet compliance requirements by June 11, 2026, it will be subject to delisting procedures.