CHICAGO, IL – Exicure , Inc. (NASDAQ:XCUR), a pharmaceutical company specializing in the development of treatments, announced today that it has received an extension from the Nasdaq Hearings Panel to continue its listing on the exchange. The company must now demonstrate compliance with all applicable listing requirements by December 17, 2024.
The extension follows recent financing transactions with HiTron Systems Inc., as Exicure works towards satisfying Nasdaq's continued listing standards. Despite the extension, the company has been informed that it will not be granted any further extensions beyond the December deadline.
Exicure expressed its commitment to meeting the listing criteria but acknowledged there can be no assurance that it will successfully demonstrate compliance to the satisfaction of the Panel. If unable to meet the standards, Exicure faces the risk of being delisted from the Nasdaq Stock Market.
The company, headquartered at 2430 N. Halsted St., Chicago, Illinois, operates under the industrial classification of pharmaceutical preparations. Formerly known as Max-1 Acquisition Corp, Exicure underwent a name change on February 21, 2017, and is incorporated in Delaware. The fiscal year for Exicure ends on December 31.
In other recent news, Exicure, Inc. has taken several noteworthy steps. The biotechnology firm has been granted an extension by the Nasdaq Hearings Panel to meet listing requirements by November 14, 2024. To address financial challenges, Exicure converted approximately $1,000,000 of debt into equity and implemented a 1-for-5 reverse stock split, reducing the total number of outstanding shares from approximately 8.65 million to about 1.73 million.
Furthermore, two significant debt-for-equity exchange agreements were entered into, with DGP Co., Ltd., and an individual note holder, converting a total of $1,000,000 in debt into equity. This strategic move, along with the reverse stock split, has enabled Exicure to regain compliance with Nasdaq's minimum bid price requirement.
In addition to these financial maneuvers, the company has suspended its clinical and development activities to evaluate strategic alternatives. Despite these efforts, Exicure has cautioned that there are risks involved, including the possibility of not rectifying existing listing deficiencies or encountering new ones.
InvestingPro Insights
As Exicure (NASDAQ:XCUR) faces a critical deadline to maintain its Nasdaq listing, recent InvestingPro data provides additional context to the company's financial situation. Despite the challenges, XCUR has shown remarkable short-term market performance, with a 113.19% return over the past week and a 117.16% return over the last month. This surge in stock price may reflect investor optimism about the company's potential to meet Nasdaq's requirements.
However, InvestingPro Tips caution that the stock's RSI suggests it may be in overbought territory, indicating that the recent price gains could be unsustainable. Additionally, XCUR is not profitable over the last twelve months, with a negative gross profit margin of -184.6% and an operating income margin of -1000.6% for the last twelve months as of Q3 2024. These figures underscore the financial challenges Exicure faces as it works to comply with Nasdaq's listing standards.
InvestingPro Tips also highlight that XCUR's short-term obligations exceed its liquid assets, which could pose difficulties as the company navigates its compliance efforts. For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for XCUR, providing a deeper understanding of the company's financial health and market position.
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