Cyclo Therapeutics faces Nasdaq delisting over meeting lapse

Published 2025-01-13, 12:58 p/m
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Cyclo Therapeutics, Inc., a biopharmaceutical company with a market capitalization of $18.7 million and currently trading at $0.65 per share, has been notified by The Nasdaq Stock Market that it is currently not in compliance with certain Nasdaq Listing Rules, which could potentially lead to the delisting of the company's securities.

According to InvestingPro, the company's stock has declined over 66% in the past year, reflecting ongoing challenges. The notice, received on Thursday, January 10, 2025, indicated that Cyclo Therapeutics had not conducted its annual shareholder meeting within twelve months following the end of the company's fiscal year, as required by Nasdaq's Listing Rules 5620(a) and 5810(c)(2)(G).

In response to this notice, Cyclo Therapeutics is required to submit a plan by February 24, 2025, to regain compliance. If Nasdaq accepts the company's plan, it may grant an extension of up to 180 calendar days, or until June 30, 2025, for the company to meet the listing requirements.

Cyclo Therapeutics, which trades under the ticker symbols NASDAQ:CYTH for its common stock and NASDAQ:CYTHW for its warrants, specializes in the development of biological products. While the company maintains an impressive gross profit margin of 91%, InvestingPro data shows concerning financial health metrics, with a current ratio of 0.17 indicating potential liquidity challenges.

The company, with its headquarters located at 6714 NW 16th Street, Suite B, Gainesville, Florida, has been in operation under the name Cyclo Therapeutics since a name change from CTD Holdings Inc. in 2000, which was formerly known as Cyclodextrin Technologies Development Inc.

The current situation places Cyclo Therapeutics in a position where it needs to address the compliance issue promptly to maintain its listing on the Nasdaq exchange. The company's CEO, N. Scott Fine, signed off on the SEC filing on Monday, January 13, 2025, confirming the receipt of the Nasdaq notification and the company's intention to respond accordingly.

This development is a significant regulatory matter for Cyclo Therapeutics and its investors, as the ability to meet Nasdaq's listing requirements is crucial for maintaining the accessibility and tradability of the company's securities on a major stock exchange. With the next earnings report scheduled for March 17, 2025, investors seeking deeper insights into the company's financial health can access additional analysis and 11 more key ProTips through InvestingPro.

In other recent news, Cyclo Therapeutics has entered into multiple financing agreements with Rafael Holdings, securing funds through convertible promissory notes totaling $16 million. The latest note of $3 million carries an interest rate of 5% per annum, payable upon maturity in February 2025. The funds will be used for working capital and general corporate purposes. Rafael Holdings, holding approximately 39.5% of Cyclo Therapeutics' common stock, has the option to convert the principal amount into shares of the company's common stock prior to repayment.

Simultaneously, the timeline for a planned merger between Cyclo Therapeutics and Rafael Holdings has been extended to February 15, 2025. This merger is contingent on certain conditions and stockholder approval.

Amid these developments, Maxim (NASDAQ:MXIM) Group and H.C. Wainwright have downgraded their ratings on Cyclo Therapeutics to 'Hold' and 'Neutral' respectively, while Ascendiant Capital maintained its 'Buy' rating but lowered its price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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