Bio-Path Holdings, Inc. (NASDAQ:BPTH), a biotechnology company, has been notified by the Nasdaq Stock Market that it currently does not meet the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market.
The company received a deficiency letter on Monday, stating that its stockholders' equity falls short of the $2.5 million threshold set by the Nasdaq Listing Rule 5550(b)(1).
Despite this setback, the trading of Bio-Path's common stock remains unaffected at this time and will continue under the ticker symbol BPTH on the Nasdaq Capital Market. The company has been given a 45-day period, until April 26, 2024, to submit a plan to regain compliance with the stockholders' equity requirement.
If Bio-Path's compliance plan is approved by Nasdaq, the company may be granted an extension of up to 180 days from the date of the deficiency letter to demonstrate compliance. In the event that Nasdaq does not accept the company's compliance plan, Bio-Path could face a delisting notification.
The company would then have the right to appeal the delisting decision to a Nasdaq Hearings Panel and would remain listed during the appeal process.
Bio-Path is currently exploring options to address the deficiency and regain compliance. However, there is no certainty that the company will be able to develop an acceptable compliance plan, that such a plan will be approved by Nasdaq, or that the company will be able to meet the stockholders' equity requirement within the potential 180-day extension period.
This development is an important consideration for investors, as the company's ability to maintain its listing status could impact its stock's liquidity and investor perception. Bio-Path's future actions and the response from Nasdaq will be closely monitored by stakeholders. The information for this article is based on a recent SEC filing by the company.
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