Vaccinex Inc . (NASDAQ: NASDAQ:VCNX), a biotechnology company, has been notified of non-compliance with Nasdaq's stockholders' equity requirement. The notification was received on April 11, 2024, based on the company's financial statements for the year ended December 31, 2023.
According to the Nasdaq Listing Rule 5550(b)(1), companies must maintain a minimum of $2.5 million in stockholders' equity. Vaccinex currently does not meet this requirement or the alternative benchmarks, which include a market value of listed securities of $35 million or net income from continuing operations of $500,000 in the most recent fiscal year or two of the last three fiscal years.
The notice from Nasdaq does not imply immediate delisting of Vaccinex's common stock from the Nasdaq Capital Market. However, the company must submit a plan by May 13, 2024, detailing how it intends to regain compliance with the equity standard.
If Nasdaq accepts this compliance plan, Vaccinex may be granted an extension to meet the necessary financial criteria. Failure to submit a plan, submission of an unacceptable plan, or inability to achieve compliance within the granted extension period could lead to the delisting of Vaccinex's common stock from the market.
Vaccinex is currently considering various options to comply with the Nasdaq's equity standard, but it is uncertain whether the company will be successful in regaining or maintaining the required compliance. The information is based on a press release statement and reflects the company's current situation regarding its listing status with Nasdaq.
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