Exicure, Inc. Received Nasdaq Notice of a Delisting Determination

Rhea-AI Summary

Exicure has received a delisting determination notice from Nasdaq for not filing its Form 10-K for 2023 and Form 10-Q for Q1 2024 by the extended deadline of May 20, 2024. Trading of Exicure's stock will be suspended on May 30, 2024, unless the company appeals by May 28, 2024. Failure to appeal will result in a Form 25-NSE being filed with the SEC, removing Exicure's securities from Nasdaq. Additionally, Exicure has not held its 2023 Annual Meeting of Stockholders, which is another basis for delisting. Exicure intends to appeal and file the required forms as soon as possible.

Positive

• Exicure intends to file an appeal to Nasdaq's Hearings Panel by the May 28, 2024 deadline.
• The company is working diligently to complete and file the Form 10-K and Q1 Form 10-Q as soon as practicable.

Negative

• Exicure received a delisting determination notice from Nasdaq.
• The company has failed to file its Form 10-K for 2023 and Form 10-Q for Q1 2024 by the extended deadline of May 20, 2024.
• Trading of Exicure's stock will be suspended on May 30, 2024, unless an appeal is made by May 28, 2024.
• Failure to appeal will result in a Form 25-NSE being filed with the SEC, removing Exicure's securities from Nasdaq.
• Exicure has not held its 2023 Annual Meeting of Stockholders, which is an additional basis for delisting.

Financial Analyst

The receipt of a delisting notice from Nasdaq has significant implications for Exicure and its stakeholders. From a financial perspective, delisting can be highly detrimental as it would likely lead to reduced liquidity and potentially lower valuations for Exicure's stock. Investors typically view delisting notices as a red flag, indicating potential underlying issues such as financial instability, management inefficiencies, or regulatory non-compliance.

Without completing and filing the necessary financial documents (Form 10-K and Q1 Form 10-Q), Exicure risks eroding investor confidence further. In the short term, this notice may prompt a sell-off, causing a decrease in stock price due to heightened uncertainty and lack of transparency. Long-term implications could include difficulties in raising capital, as investors generally prefer companies with strong regulatory compliance and financial clarity.

Moreover, the company’s failure to hold its 2023 Annual Meeting of Stockholders adds another layer of concern, as it indicates potential governance issues or operational challenges. Such failures often deter institutional investors who prioritize good corporate governance practices. This scenario demands close monitoring of Exicure's ability to meet its filing commitments and the outcome of its appeal process.

Legal Expert

The delisting notice from Nasdaq involves several legal considerations. Nasdaq's Listing Rules are designed to ensure that companies meet certain standards of transparency and governance, essential for investor protection. Exicure's failure to file timely reports and hold its Annual Meeting breaches these rules, prompting regulatory action.

The appeal process offers a temporary reprieve but is not a guarantee of continued listing. Legal proceedings in such cases often require the company to demonstrate robust plans to address the compliance issues and to assure Nasdaq of its future adherence to listing requirements. If the appeal fails, Exicure’s securities would be removed from Nasdaq, leading to trading on over-the-counter (OTC) markets. The OTC markets generally have lower visibility and liquidity, which could adversely impact shareholders and the company’s ability to attract new investors.

For retail investors, this means increased risk and less regulatory oversight if Exicure transitions to OTC trading. It’s critical to follow the company’s progress in completing its filings and the response from Nasdaq’s Hearings Panel to assess the likelihood of successful compliance and continued listing.

CHICAGO--(BUSINESS WIRE)-- Exicure, Inc. (“Exicure” or the “Company”) (Nasdaq: XCUR), announced today it received notice of a delisting determination (the “Staff Delisting Determination”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”). The Staff Delisting Determination notified the Company that since it has not yet filed its Form 10-K for the year ended December 31, 2023 (the “Form 10-K”) per Nasdaq Listing Rule 5250(c)(1) (the “Rule”) by Nasdaq’s extended deadline of May 20, 2024 pursuant to the previously granted exception, trading of the Company’s common stock would be suspended from The Nasdaq Capital Market at the opening of business on May 30, 2024, unless the Company requests an appeal of the Staff Delisting Determination by May 28, 2024. In addition, unless an appeal is timely requested, a Form 25-NSE would be filed with the Securities and Exchange Commission (the “SEC”), which would remove the Company’s securities from listing and registration on Nasdaq. In addition to the delinquency related to the Form 10-K, the Staff Delisting Determination noted the Company’s delinquency under the Rule because of its failure to file its Form 10-Q for the first quarter of 2024 (the “Q1 Form 10-Q”) and the Company’s continued delinquency under Rule 5620 because it has not held its 2023 Annual Meeting of Stockholders, each as an additional and separate basis for delisting that should be addressed in any appeal.

The Company intends to file an appeal to Nasdaq’s Hearings Panel by the May 28, 2024 deadline and subsequently submit its plan to regain compliance with all applicable listing requirements. This request for an appeal, if timely submitted, would automatically stay the suspension of trading in the Company’s securities for a period of 15 days from the date of the request. The Company intends to seek an extended stay pending the hearing, although no assurance can be provided that such an extension would be granted.

The Company’s management is working diligently to complete the Form 10-K and Q1 Form 10-Q and intends to file the Form 10-K and Q1 Form 10-Q as soon as practicable.

About Exicure

Exicure, Inc. has historically been an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. Following its recent restructuring and suspension of clinical and development activities, the Company is exploring strategic alternatives to maximize stockholder value, both with respect to its historical biotechnology assets and more broadly. For further information, see www.exicuretx.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding the filing of our Form 10-K and Q1 Form 10-Q, the holding of our Combined Annual Meeting, our intention to appeal the Staff Delisting Determination and seek an extended stay, and the outcome of our appeal and the timing of the stay. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual outcomes to differ materially from the outcomes expressed or implied by this report. Such risks include, among others, the possibility of unanticipated delays that will prevent the filing of the Form 10-K and/or Q1 Form 10-Q or the holding of our Combined Annual Meeting, the risk that the work necessary to complete the filings is greater than anticipated or may involve the resolution of additional issues identified during the review process, the outcome of the Company’s appeal of the Staff Delisting Determination and request for an extended stay, the risk that the Company may not respond adequately to further inquiries from Nasdaq relating to the appeal or other matters Nasdaq may raise related to the Company’s compliance with listing requirements, and the risk that Nasdaq will not accept any plan to regain compliance and will delist the Company's common stock. All such factors are difficult to predict and may be beyond the Company’s control. The Company undertakes no obligation and does not intend to update or revise any forward-looking statements contained herein, except as required by law or regulation. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240523748164/en/

Josh Miller

847-673-1700

media@exicuretx.com

Source: Exicure, Inc.

FAQ

Why did Exicure receive a delisting determination notice from Nasdaq?

Exicure received the notice due to not filing its Form 10-K for 2023 and Form 10-Q for Q1 2024 by the extended deadline, as well as not holding its 2023 Annual Meeting of Stockholders.

When will Exicure's stock be suspended from Nasdaq?

Trading of Exicure's stock will be suspended on May 30, 2024, unless the company requests an appeal by May 28, 2024.

What happens if Exicure does not appeal the delisting determination?

If Exicure does not appeal, a Form 25-NSE will be filed with the SEC, removing Exicure's securities from listing and registration on Nasdaq.

What steps is Exicure taking to address the delisting determination?

Exicure intends to file an appeal to Nasdaq's Hearings Panel and submit a plan to regain compliance with all applicable listing requirements.

What are the key dates related to Exicure's delisting notice?

Exicure must appeal by May 28, 2024, and trading of its stock will be suspended on May 30, 2024, unless an appeal is made.