Onconetix, Inc. Announces Receipt of Additional Notice from Nasdaq

Rhea-AI Summary

Onconetix (NASDAQ: ONCO) has received multiple delisting notices from Nasdaq due to several compliance issues. The company faces delisting threats due to: (1) failure to file its Q1 2025 10-Q report, (2) failure to file its 2024 annual 10-K report, and (3) non-compliance with the minimum bid price requirement of $1.00, with shares trading below $0.10 for ten consecutive days.

The company has requested a hearing before the Nasdaq Hearings Panel scheduled for May 27, 2025, which has temporarily stayed the trading suspension. Onconetix has also submitted a stay request on May 1, 2025. The company intends to file both missing reports to regain compliance, though there's no assurance the Panel will grant extensions.

Positive

• None.

Negative

• Multiple Nasdaq compliance violations threatening delisting
• Failure to file Q1 2025 10-Q report
• Failure to file 2024 annual 10-K report
• Stock price fallen below $0.10, violating minimum $1.00 bid requirement
• Risk of immediate trading suspension without Panel approval

Insights

Securities Regulation Expert

Onconetix faces imminent Nasdaq delisting due to multiple compliance failures, creating serious investor uncertainty and regulatory concerns.

The multiple regulatory compliance failures indicated in this announcement paint a severely concerning picture for Onconetix's listing status. The company has received three separate delisting notices from Nasdaq, creating a perfect storm of compliance failures:

1. Failure to file its Q1 2025 quarterly report (10-Q)

2. Previously disclosed failure to file its 2024 annual report (10-K)

3. Failure to maintain the minimum bid price requirement of $1.00, with shares falling below the critical threshold of $0.10 for ten consecutive trading days

This third violation is particularly severe, as it triggers an accelerated delisting procedure under Nasdaq Rule 5810(c)(3)(A)(iii). While Onconetix has requested a hearing before the Nasdaq Hearings Panel (scheduled for May 27) and a stay of suspension, the company's regulatory position is precarious. The confluence of reporting delinquencies and the extreme bid price deficiency signal fundamental operational issues.

What's notable is that even if Onconetix files its missing financial reports promptly, it still faces the challenge of addressing the sub-$0.10 share price issue, which often requires a reverse stock split or significant positive business development to resolve. The company's statement that it "intends to file" the missing reports lacks specific timelines or remediation plans, suggesting potential ongoing internal challenges. The Nasdaq Panel has significant discretion here, but the multiple concurrent violations substantially increase the likelihood of delisting, which would force Onconetix to trade on less regulated over-the-counter markets with reduced liquidity and institutional investor access.

Cincinnati, OH, May 22, 2025 (GLOBE NEWSWIRE) -- Onconetix, Inc. (Nasdaq: ONCO) (the “Company”) announced that it received a Staff delisting letter from The Nasdaq Capital Market (“Nasdaq”) on May 20, 2025 indicating that the Company’s failure to file its Quarterly Report on Form 10-Q for the three months ended March 31, 2025 (the “10-Q”) is in violation of Nasdaq’s continued listing requirements under Nasdaq Listing Rule 5250(c)(1) (the “Rule”).

This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification.

As previously reported in the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “Commission”) on April 24, 2025, the Company received a deficiency notice from Nasdaq that the Company was not in compliance with Nasdaq’s Listing Rules as set forth in the Rule given the Company’s failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “10-K”).

As previously reported in the Current Report on Form 8-K filed with the Commission on April 18, 2025, the Company received a Staff delisting letter from the Nasdaq Listing Qualifications Staff indicating that, based upon the closing bid price of the Company’s common stock, par value $0.00001 per share (“Common Stock”), from November 25, 2024 to January 10, 2025, the Company was no longer in compliance with the requirement for continued listing on The Nasdaq Capital Market to maintain a minimum bid price of $1.00 per share, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”). On April 14, 2025, Nasdaq issued a further notice to the Company that it determined that the Company’s securities had a closing bid price of $0.10 or less for ten consecutive trading days and was subject to delisting pursuant to the provisions under Nasdaq Listing Rule 5810(c)(3)(A)(iii). As a result, unless the Company timely requested a hearing before the Nasdaq Hearings Panel (the “Panel”), trading of the Common Stock would be suspended at the opening of business on April 23, 2025, and a Form 25-NSE would be filed with the Commission, which would remove the Company’s securities from listing and registration on Nasdaq. The Company timely requested a hearing before the Panel, which stayed the trading suspension pending the Panel’s decision, and the Panel has scheduled a hearing date of May 27, 2025.

As the Company is already before a Panel for its failure to comply with Minimum Bid Price Rule, the Company had seven calendar days from the date of the Notice, or until May 1, 2025, to request a stay of the suspension, which request will stay the suspension of the Company’s securities pending the Panel’s decision. The Company submitted a stay request on May 1, 2025. However, there can be no assurance that the Panel will grant the Company’s request for a stay pending the hearing process or any further extension following the hearing.

The Company intends to file the Form 10-K and 10-Q as promptly as possible in order to regain compliance with the Rule.

About Onconetix, Inc.:

Onconetix is a commercial stage biotechnology company focused on the research, development and commercialization of innovative solutions for men’s health and oncology. Through our acquisition of Proteomedix, we own Proclarix®, an in vitro diagnostic test for prostate cancer originally developed by Proteomedix and approved for sale in the European Union (“EU”) under the In Vitro Diagnostic Regulation (“IVDR”). We also own ENTADFI, an FDA-approved, once daily pill that combines finasteride and tadalafil for the treatment of benign prostatic hyperplasia (“BPH”), a disorder of the prostate. For more information, visit www.onconetix.com.

Contact Information:

Onconetix, Inc.
201 E. Fifth Street, Suite 1900
Cincinnati, OH 45202
Phone: (513) 620-4101

Investor Contact Information:

Onconetix Investor Relations
Email: investors@onconetix.com

FAQ

Why is Onconetix (ONCO) facing delisting from Nasdaq?

Onconetix is facing delisting due to three violations: failure to file Q1 2025 10-Q report, failure to file 2024 10-K report, and trading below the minimum $1.00 bid price requirement, with shares below $0.10 for ten consecutive days.

What is the current status of ONCO's Nasdaq delisting process?

ONCO has requested a hearing scheduled for May 27, 2025, before the Nasdaq Hearings Panel, which has temporarily stayed the trading suspension. The company also submitted a stay request on May 1, 2025.

What must Onconetix do to maintain its Nasdaq listing?

Onconetix must file its missing Q1 2025 10-Q and 2024 10-K reports, and address the minimum bid price requirement of $1.00 per share to regain compliance with Nasdaq listing rules.

When did Onconetix receive its first Nasdaq delisting notice?

Onconetix received its first delisting notice regarding the minimum bid price violation for the period from November 25, 2024 to January 10, 2025, followed by additional notices for filing violations.