Titan Pharmaceuticals, Inc. Announces Receipt of Notice from Nasdaq
Rhea-AI Summary
Titan Pharmaceuticals (NASDAQ: TTNP) has received two notices from Nasdaq regarding listing compliance issues. The first notice on November 22, 2024, concerns the company's failure to file its Q3 2024 Form 10-Q on time. Titan has until January 21, 2025, to submit a compliance plan and may receive up to 180 days (until May 19, 2025) to file the report. The second notice on November 25, 2024, addresses non-compliance with audit committee requirements following Brynner Chiam's appointment. The company has until November 6, 2025, to resolve this issue and plans to appoint an additional independent director to the Board and Audit Committee.
Positive
- None.
Negative
- Failure to file Q3 2024 Form 10-Q on time, risking Nasdaq listing status
- Non-compliance with Nasdaq audit committee requirements
- Multiple simultaneous compliance issues with Nasdaq listing requirements
Insights
The dual Nasdaq compliance issues raise significant red flags. The delayed Q3 filing suggests potential internal control or accounting challenges that could impact investor confidence. While Titan has until January 21, 2025 to submit a compliance plan for the filing delay and until May 5, 2025 to resolve the audit committee requirements, these developments indicate operational instability.
The appointment of Brynner Chiam as both Acting Principal Executive Officer and Acting Principal Financial Officer creates a concerning concentration of power and governance issues. For a microcap company with a market cap of just
NEW YORK, Nov. 27, 2024 (GLOBE NEWSWIRE) -- Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) (“Titan”) today reported that it received a notice (the “5250 Notice”) on November 22, 2024 from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) advising the Company that it was not in compliance with Nasdaq’s continued listing requirements under the Nasdaq Listing Rule 5250(c)(1) (“Rule 5250”) as a result of its failure to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the “Q3 Form 10-Q”) in a timely manner.
Under Nasdaq rules, the Company has 60 calendar days from receipt of the 5250 Notice or until January 21, 2025, to submit a plan to regain compliance with the Listing Rule. If Nasdaq accepts the Company’s plan, then Nasdaq may grant an exception of up to 180 calendar days from the due date of the Q3 Form 10-Q, or until May 19, 2025, to regain compliance.
In response to the Notice, the Company is working to file the Q3 Form 10-Q as soon as possible in order to regain compliance with the Listing Rule. However, if the Company does not submit the Q3 Form 10-Q by January 21, 2025, the Company will submit a plan by such date to Nasdaq that outlines, as definitively as possible, the steps the Company will take to promptly file the Q3 Form 10-Q.
Additionally, on November 25, 2024, the Company received a notice (the “5605 Notice”) from Nasdaq advising the Company that, following the appointment of Brynner Chiam as Acting Principal Executive Officer and Acting Principal Financial Officer of the Company on November 6, 2024, the Company no longer complies with Nasdaq’s audit committee requirements as set forth in Listing Rule 5605 (“Rule 5605”). Nasdaq advised that consistent with Listing Rule 5605(c)(4), Nasdaq will provide the Company with a cure period in order to regain compliance with Rule 5605: (i) until the earlier of the Company’s next annual shareholders’ meeting or November 6, 2025; or (ii) if the next annual shareholders’ meeting is held before May 5, 2025, then the Company must evidence compliance no later than May 5, 2025.
The Company intends to appoint an additional independent director to the Board of Directors and the Audit Committee prior to the end of the cure periods.
About Titan Pharmaceuticals
Titan Pharmaceuticals, Inc. (NASDAQ: TTNP), formerly based in South San Francisco, CA, is a development stage company previously focused on developing proprietary therapeutics utilizing ProNeura® long-term, continuous drug delivery technology. In December 2021, Titan commenced a process to explore and evaluate strategic alternatives to enhance shareholder value.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our product development programs and any other statements that are not historical facts. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from management's current expectations include those risks and uncertainties relating to our ability to raise capital, the regulatory approval process, the development, testing, production and marketing of our drug candidates, patent and intellectual property matters and strategic agreements and relationships. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law. A complete discussion of the risks and uncertainties that may affect Schmitt's business, including the business of its subsidiary, is included in “Risk Factors” in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.
Media & Investor Contacts
Brynner Chiam
Acting Principal Executive Officer and Acting Principal Financial Officer
(786) 769-7512
FAQ
What is the deadline for Titan Pharmaceuticals (TTNP) to submit its compliance plan to Nasdaq?
How long does Titan Pharmaceuticals (TTNP) have to resolve its audit committee compliance issues?
What triggered Titan Pharmaceuticals' (TTNP) Nasdaq compliance issues in November 2024?
