Cyclacel Pharmaceuticals Confirms It Has Filed an Appeal to Nasdaq Staff Delisting Letter
Rhea-AI Summary
Cyclacel Pharmaceuticals (NASDAQ: CYCC) has filed an appeal against Nasdaq's delisting letter and requested a hearing before the Nasdaq Hearings Panel, scheduled for October 15, 2024. This action automatically stays any suspension or delisting pending the Panel's decision. The company was found non-compliant with Nasdaq Listing Rule 5550(b)(1) on August 26, 2024, as it reported stockholders' equity below $2.5 million as of June 30, 2024. At the hearing, Cyclacel will present its plan to regain and sustain compliance with the Equity Rule. However, there's no guarantee that the hearing will be successful or that the company will meet continued listing criteria if allowed to remain listed.
Positive
- Appeal filed against Nasdaq delisting, potentially extending listing period
- Automatic stay of suspension or delisting action pending Panel's decision
Negative
- Non-compliance with Nasdaq Listing Rule 5550(b)(1) due to stockholders' equity below $2.5 million
- Risk of potential delisting from Nasdaq
- Uncertainty about ability to regain and sustain compliance with listing requirements
Insights
Cyclacel's appeal against Nasdaq delisting is a critical development that underscores the company's financial challenges. The reported stockholders' equity below
The upcoming hearing on October 15, 2024, is a pivotal moment for Cyclacel. If unsuccessful, delisting could severely impact stock liquidity and valuation. Investors should closely monitor the company's plan to regain compliance, as it will be important for future financial stability. The automatic stay provides a temporary reprieve, but the underlying financial weakness remains a major concern for the company's long-term prospects.
The appeal process initiated by Cyclacel demonstrates the company's proactive approach to maintaining its Nasdaq listing. However, this situation highlights the precarious legal and regulatory position the company finds itself in. The hearing before the Nasdaq Hearings Panel is not just a formality; it requires a robust and convincing plan for compliance.
Investors should be aware that even if Cyclacel succeeds in its appeal, it will likely face ongoing scrutiny and potential additional compliance requirements. The company's ability to navigate this regulatory challenge will be important for its future. The outcome of this hearing could set a precedent for how Nasdaq handles similar cases in the biotech sector, making it a significant event to watch for industry observers.
Cyclacel's delisting appeal reflects broader challenges in the biotech sector, particularly for smaller companies struggling with cash burn and equity positions. This situation could signal a potential trend of increased regulatory pressure on underperforming biotech firms. Investors should view this as a reminder of the high-risk nature of early-stage biotech investments.
The market's reaction to this news will be telling. A successful appeal could lead to a short-term stock price boost, but the underlying financial weaknesses may continue to weigh on investor sentiment. This event underscores the importance of due diligence in assessing not just the scientific potential of biotech companies, but also their financial health and regulatory compliance. It's a wake-up call for investors to scrutinize balance sheets more closely in this sector.
Delisting or suspension action stayed pending the issuance of a final decision
BERKELEY HEIGHTS, N.J., Sept. 03, 2024 (GLOBE NEWSWIRE) -- Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; "Cyclacel" or the "Company"), a biopharmaceutical company developing innovative medicines based on cancer cell biology, today announced that the Company timely requested a hearing before the Nasdaq Hearings Panel (the “Panel”) and a hearing has been scheduled for October, 15, 2024. The request automatically stays any suspension or delisting action pending the Panel’s decision after the hearing and the expiration of any additional extension period granted by the Panel after the hearing.
As previously reported, on August 26, 2024, the Listing Qualifications Staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) determined that Cyclacel Pharmaceuticals, Inc. (the “Company”) was not in compliance with the Nasdaq Listing Rule 5550(b)(1) (the “Equity Rule”) because the Company reported stockholders’ equity of less than
At the hearing, the Company will present its plan for regaining and sustaining compliance with the Equity Rule for continued listing. However, there can be no assurance that a hearing with the Panel will be successful or, if the Panel determines to continue the Company’s listing, that the Company will be able to satisfy the continued listing criteria subsequent to the hearing.
About Cyclacel Pharmaceuticals, Inc.
Cyclacel is a clinical-stage, biopharmaceutical company developing innovative cancer medicines based on cell cycle, transcriptional regulation and mitosis biology. The transcriptional regulation program is evaluating fadraciclib, a CDK2/9 inhibitor, and the anti-mitotic program plogosertib, a PLK1 inhibitor, in patients with both solid tumors and hematological malignancies. Cyclacel's strategy is to build a diversified biopharmaceutical business based on a pipeline of novel drug candidates addressing oncology and hematology indications. For additional information, please visit www.cyclacel.com.
Forward-looking Statements
This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements related to Cyclacel’s future plans and prospects, Cyclacel’s anticipated cash runway and the planned timing of data results and continued development of fadraciclib. Factors that may cause actual results to differ materially include market and other conditions, the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, trials may have difficulty enrolling, Cyclacel may not obtain approval to market its product candidates, the risks associated with reliance on outside financing to meet capital requirements, the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates and Cyclacel’s ability to regain and maintain compliance with Nasdaq’s continued listing requirements. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic and other filings we file with the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact
| Company: | Paul McBarron, (908) 517-7330, IR@cyclacel.com |
© Copyright 2024 Cyclacel Pharmaceuticals, Inc. All Rights Reserved. The Cyclacel logo and Cyclacel® are trademarks of Cyclacel Pharmaceuticals, Inc.
FAQ
Why is Cyclacel Pharmaceuticals (CYCC) facing potential delisting from Nasdaq?
When is Cyclacel Pharmaceuticals' (CYCC) hearing with the Nasdaq Hearings Panel scheduled?
What happens to Cyclacel Pharmaceuticals' (CYCC) listing status while waiting for the Nasdaq hearing?
Is Cyclacel Pharmaceuticals (CYCC) guaranteed to remain listed on Nasdaq after the hearing?
