Protagenic Therapeutics, Inc., a pharmaceutical company, has been notified by Nasdaq that it is currently not meeting the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The company, which trades under the ticker PTIX, was informed on Wednesday, July 24, 2024, that its common stock had failed to maintain the minimum bid price of $1.00 per share over the preceding 30 consecutive business days, as required by Nasdaq Listing Rule 5550(a)(2).
Despite this notification, there is no immediate impact on the trading of Protagenic Therapeutics' common stock, and it will continue to be listed under the symbol "PTIX". The company has been granted a 180-day period, until January 20, 2025, to regain compliance with the minimum bid price rule. To achieve this, the company's common stock must close at $1.00 or higher for at least ten consecutive business days.
If Protagenic Therapeutics is unable to meet the minimum bid price requirement by the end of this 180-day grace period, it may be eligible for an additional 180 days to regain compliance, provided it meets all other initial listing standards for Nasdaq, except for the bid price requirement. The company would need to notify Nasdaq of its intent to correct the bid price deficiency during this second compliance period.
Should the company fail to comply during the allotted time frames, it may face delisting from the Nasdaq Capital Market. In such a scenario, the company would have the option to appeal the decision to a Nasdaq hearings panel. However, there is no guarantee that an appeal would result in a favorable outcome for Protagenic Therapeutics.
InvestingPro Insights
As Protagenic Therapeutics navigates the challenge of meeting Nasdaq's minimum bid price requirement, current and potential investors may find it useful to consider several key metrics and insights from InvestingPro. With a market capitalization of just $3.12 million, the company's financial health is under scrutiny. The InvestingPro data highlights a P/E ratio of -0.51, reflecting the market's concerns about the company's profitability. Additionally, the stock is trading near its 52-week low, with a price of $0.74 at the previous close, which is only 31.58% of its 52-week high.
InvestingPro Tips suggest a mixed financial picture for Protagenic Therapeutics. On the positive side, the company holds more cash than debt, and its liquid assets exceed short-term obligations. However, the company is quickly burning through cash and suffers from weak gross profit margins. Analysts are not optimistic about the company's profitability in the near term, expecting net income to drop this year, and they do not anticipate the company will be profitable this year. Over the last three months, the stock price has fallen significantly, by -49.36%, indicating investor concerns.
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