Avalon GloboCare Corp., a biotechnology company specializing in biological products, is facing delisting from the Nasdaq Capital Market. The company, which underwent a reverse stock split on October 25, 2024, did not meet Nasdaq's minimum bid price requirement within the stipulated timeframe.
The reverse stock split was executed at a 1-for-15 ratio, intended to boost the company's share price to comply with Nasdaq's Listing Rule 5550(a)(2). However, the company received notice on Monday that the reverse split did not occur at least ten business days before the compliance deadline of October 28, 2024. This procedural oversight has resulted in the failure to satisfy the continued listing rule, prompting Nasdaq to issue a notice of delisting.
Avalon GloboCare plans to appeal the decision and has until November 5, 2024, to request a hearing with the Nasdaq Hearings Panel. The company aims to address the bid price deficiency and stay the delisting process. There is an expectation that the recent reverse split will eventually rectify the bid price issue, although this remains subject to Nasdaq's review and the outcome of the forthcoming hearing.
The company, headquartered in Freehold, New Jersey, and incorporated in Delaware, has not provided any further details on its strategy to regain compliance or its plans should the appeal not be successful. This development is a significant setback for Avalon GloboCare, which is traded under the ticker symbol NASDAQ:ALBT.
Investors and market watchers are now awaiting further announcements from the company regarding its appeal and future steps to maintain its listing on the Nasdaq Capital Market. This information is based on a press release statement from Avalon GloboCare Corp.
In other recent news, Avalon GloboCare Corp. has enacted a 1-for-15 reverse stock split and reduced the number of authorized shares from 490 million to 100 million. This strategic move is aimed at bringing the company back in line with the Nasdaq Capital Market's minimum bid price requirement, decreasing the total number of outstanding common shares from roughly 16.0 million to about 1.1 million.
During Avalon's virtual annual meeting, stockholders approved these changes and elected seven directors to the company's board. The company also announced the U.S. launch of its KetoAir™ breathalyzer, a device for ketogenic health management.
In other developments, Avalon GloboCare has changed its independent registered public accounting firm from Marcum LLP to M&K CPAS, PLLC. This change was approved by the stockholders, who also consented to the issuance of common stock exceeding 19.99% of the outstanding shares.
These are recent developments that have occurred within Avalon GloboCare Corp.
InvestingPro Insights
The recent developments at Avalon GloboCare Corp. (NASDAQ:ALBT) are reflected in the company's financial metrics and market performance. According to InvestingPro data, ALBT's market capitalization stands at a modest $3.14 million, indicating its small-cap status. The company's financial health appears precarious, with InvestingPro Tips highlighting that short-term obligations exceed liquid assets, and the company has not been profitable over the last twelve months.
The stock's performance has been particularly concerning, with InvestingPro data showing a 66.34% price decline over the past year and a 35.38% drop in the last three months. This aligns with the InvestingPro Tip that the stock has taken a big hit over the last week, falling 9.28% in just seven days. These figures underscore the challenges Avalon GloboCare faces in meeting Nasdaq's minimum bid price requirement, even after the reverse stock split.
Furthermore, the company's revenue for the last twelve months stands at -$7.53 million, with a staggering revenue growth decline of 719.79%. This negative revenue figure, coupled with an operating income of -$13.3 million, paints a picture of significant financial strain, which may complicate the company's efforts to maintain its Nasdaq listing.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for ALBT, providing deeper insights into the company's financial situation and market position.
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