Shares of biopharmaceutical company Humanigen (NASDAQ:HGEN) are down a massive 74% at the time of writing today after the disclosure that it is in noncompliance with Nasdaq’s continued listing rule after three of its Board members resigned.
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While the resignations were not due to any disagreements, following the resignations, Humanigen does not have a Board made up of a majority of independent directors or an audit committee of the Board made up of at least three independent directors.
In May, Humanigen disclosed negotiations with a private biopharmaceutical company for a proposed business combination. The negotiations ended without any definitive agreement and add to this, it has not been able to conclude another strategic transaction or equity financing so far.
Consequently, Humanigen has notified the exchange of its inability to comply with the listing criteria and received a letter regarding the delisting of its shares on July 26. Consequently, Humanigen shares will now transition onto the OTC Pink Market.
Moreover, Humanigen has noted that it may not be able to remain a going concern and is now evaluating restructuring options including bankruptcy or other insolvency proceedings in the third quarter.
Today’s ~74% price erosion comes on top of a nearly 53.4% drop in Humanigen shares over the past year.
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