Alzamend Neuro Announces Favorable Decision from Nasdaq Hearings Panel

Rhea-AI Summary

Alzamend Neuro (Nasdaq: ALZN) announced that the Nasdaq Hearings Panel has granted the company an extension to remain listed on the Nasdaq Capital Market.

To comply with Nasdaq’s Listing Rule 5550(b)(1), Alzamend must achieve a stockholder equity of at least $2.5 million by September 23, 2024.

CEO Stephan Jackman expressed gratitude towards the Panel and affirmed the company's commitment to executing their compliance plan.

Alzamend Neuro focuses on developing treatments for Alzheimer's disease, bipolar disorder, major depressive disorder, and PTSD.

Positive

• Nasdaq granted Alzamend an extension to stay listed.
• The company has until September 23, 2024, to comply with the Stockholder Equity Rule.
• CEO expressed confidence in achieving compliance.

Negative

• Alzamend is currently not in compliance with Nasdaq's Listing Rule 5550(b)(1).
• The company must reach a stockholder equity of at least $2.5 million.

Financial Analyst

The decision by the Nasdaq Hearings Panel to allow Alzamend Neuro to remain listed on the Nasdaq Capital Market under the condition that they comply with the Stockholder Equity Rule by September 23, 2024, is a significant development for the company.

This decision buys Alzamend important time to improve its financial standing and stave off delisting, which could have severely impacted its stock price and investor confidence. Compliance with the Stockholder Equity Rule means that Alzamend must demonstrate stockholder equity of at least $2.5 million, a metric that indicates the company's net worth and financial health.

Investors should regard this extension as a temporary reprieve rather than a permanent solution. The company now faces the challenge of meeting this requirement within a specified timeframe, which could potentially involve additional fundraising, cost reductions, or strategic partnerships. Each of these measures comes with its own set of risks and opportunities.

In the short term, the positive news may provide a slight boost to investor sentiment, but the long-term outlook will heavily depend on Alzamend's ability to achieve compliance and demonstrate financial stability. Investors should remain cautious and monitor the company's quarterly updates closely for signs of progress toward meeting these requirements.

Market Research Analyst

From a market perspective, Alzamend Neuro's ability to maintain its listing on the Nasdaq gives it a significant advantage in terms of visibility and credibility. Remaining on the Nasdaq enhances its appeal to institutional investors who may have restrictions on investing in non-listed or over-the-counter stocks.

However, this decision does not fundamentally alter the company's market positioning or competitive landscape in the biopharmaceutical sector. Alzamend still faces stiff competition in developing treatments for Alzheimer's, bipolar disorder, major depressive disorder and PTSD. The market for these treatments is highly competitive, with numerous companies vying for FDA approval and market share.

Investors should be aware that while the company’s continued Nasdaq listing is a positive development, it does not address the underlying challenges in its business operations and product development pipeline. It's essential to keep an eye on Alzamend's pipeline progress, clinical trial results and regulatory milestones, which are the true drivers of long-term value.

ATLANTA--(BUSINESS WIRE)-- Alzamend Neuro, Inc. (Nasdaq: ALZN) (“Alzamend”), a clinical-stage biopharmaceutical company focused on developing novel products for the treatment of Alzheimer’s disease (“Alzheimer’s”), bipolar disorder (“BD”), major depressive disorder (“MDD”) and post-traumatic stress disorder (“PTSD”), announced today that the Nasdaq Hearings Panel (“Panel”) granted Alzamend’s request to continue its listing on The Nasdaq Capital Market (“Nasdaq”), subject to Alzamend demonstrating compliance, on or before September 23, 2024, with Listing Rule 5550(b)(1), which requires stockholder equity of at least $2.5 million (the “Stockholder Equity Rule”), and satisfying all applicable requirements for continued listing on Nasdaq.

“We appreciate the Panel carefully considering our appeal and its decision granting Alzamend an extension to achieve compliance with the Stockholder Equity Rule,” said Stephan Jackman, the Chief Executive Officer of Alzamend. “We continue to implement the compliance plan that we presented to the Panel and are excited to remain listed on Nasdaq.”

For more information on Alzamend, stockholders, investors, and any other interested parties may read Alzamend’s public filings and press releases available under the Investor Relations section at https://www.alzamend.com/ or available at https://www.sec.gov/.

About Alzamend Neuro

Alzamend Neuro is a clinical-stage biopharmaceutical company focused on developing novel products for the treatment of Alzheimer’s, BD, MDD and PTSD. Our mission is to rapidly develop and market safe and effective treatments. Our current pipeline consists of two novel therapeutic drug candidates, AL001 - a patented ionic cocrystal technology delivering lithium via a therapeutic combination of lithium, salicylate and L-proline, and ALZN002 - a patented method using a mutant-peptide sensitized cell as a cell-based therapeutic vaccine that seeks to restore the ability of a patient’s immunological system to combat Alzheimer’s. Both of our product candidates are licensed from the University of South Florida Research Foundation, Inc. pursuant to royalty-bearing exclusive worldwide licenses.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and Alzamend undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect Alzamend’s business and financial results are included in Alzamend’s filings with the U.S. Securities and Exchange Commission. All filings are available at www.sec.gov and on Alzamend’s website at www.Alzamend.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522362949/en/

Email: Info@Alzamend.com or call: 1-844-722-6333

Source: Alzamend Neuro, Inc.

FAQ

What extension did Alzamend Neuro receive from Nasdaq?

Alzamend Neuro received an extension from Nasdaq to remain listed on the Nasdaq Capital Market until September 23, 2024, provided they meet the Stockholder Equity Rule.

What is the Stockholder Equity Rule for Alzamend Neuro (ALZN)?

The Stockholder Equity Rule requires Alzamend Neuro to have a stockholder equity of at least $2.5 million.

By when does Alzamend Neuro need to comply with Nasdaq’s requirements?

Alzamend Neuro must comply with Nasdaq’s Listing Rule 5550(b)(1) by September 23, 2024.

What are the key focus areas of Alzamend Neuro (ALZN)?

Alzamend Neuro focuses on developing treatments for Alzheimer's disease, bipolar disorder, major depressive disorder, and PTSD.

How did Alzamend's CEO respond to the Nasdaq Panel's decision?

CEO Stephan Jackman expressed gratitude towards the Panel and affirmed the company's commitment to executing their compliance plan.