Advaxis (ADXS) announced that it has received notification from Nasdaq that the company’s common stock will be subject to delisting, as it has failed to regain compliance with the Listing Rule.
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Shares of the clinical-stage biotechnology company were down 1.6% in Monday’s early trading session. (See ADXS stock chart on TipRanks)
According to an SEC filing by Advaxis, the company’s shares could be delisted, unless Advaxis requests a hearing with the Nasdaq Hearing Panel.
The company confirmed that it will make a timely request for a hearing. The hearing request will pause any suspension or delisting until the completion of the hearing, and the company would remain listed pending the Panel’s decision.
As per the Listing Rule, the Panel can grant a further extension, which will not last beyond December 20, 2021.
Earlier, on April 20, 2020, and December 22, 2020, Advaxis received notices from Nasdaq because it was trading below the minimum bid price of $1.00 per share. According to the Listing Rule, stocks on the Nasdaq Global Select Market are required to trade above the minimum $1.00 bid price.
Upon submission of an intention to fix the non-compliance, Advaxis received approval to transfer its listing to the Nasdaq Capital Market from the Nasdaq Global Select Market. Following this, the stock started trading on the Nasdaq Capital Market, effective December 24, 2020.
With its transfer to the Nasdaq Capital Market, Advaxis was also granted an additional 180-day extension, or until June 21, 2021, to regain compliance with the Rule.
Nasdaq had then commented that, if at any time before June 21, 2021, the bid price of the Advaxis’ common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the company will regain compliance with the Rule and the matter will be closed.
Despite gaining 35% in the past six months, Advaxis’s shares have been unable to meet the listing requirement. It remains to be seen if Nasdaq approves its request for continued listing at the hearing.
The stock has picked up a rating from one analyst in the past three months. Alliance Global Partners analyst James Molloy decreased the price target on ADXS to $2.25 from $5 but maintained a Buy on the stock.
Advaxis scores a 2 of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to underperform market expectations.
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