BioNexus Gene Lab Corp, a medical laboratory services provider, is facing delisting from the Nasdaq Capital Market. The company, headquartered in Kuala Lumpur, received a notice on Monday (NASDAQ:MNDY) from Nasdaq for not maintaining the minimum bid price of $1 per share, as required by Nasdaq Listing Rule 5550(a)(2).
Despite being granted two consecutive 180-day grace periods, which ended on November 4, 2024, BioNexus Gene Lab was unable to meet the requirement.
In an attempt to reverse the delisting decision, BioNexus Gene Lab requested a hearing with a Nasdaq Hearings Panel today. The hearing request has temporarily halted the suspension of trading of the company’s stock.
The company plans to present a compliance plan at the hearing, which may include a reverse stock split among other strategies to satisfy Nasdaq’s listing standards.
Additionally, the company announced the appointment of Ms. Jook Yuen Low as an independent director to its Board of Directors on Monday. Ms. Low, 46, brings over 20 years of legal experience, particularly in conveyancing, corporate law, and wealth management consulting.
She will also serve on the Audit Committee and the Nomination & Corporate Governance Committee until the next annual shareholders meeting. Ms. Low's compensation as an independent director is set at $1,000 per month.
Moreover, the company has re-appointed Mr. Su-Leng Tan Lee as Secretary and appointed him as President, effective immediately, without changes to his compensation package. These leadership updates are part of BioNexus Gene Lab’s efforts to enhance its governance and strategic direction during this critical phase of compliance and operational review.
The information for this article is based on a press release statement.
"In other recent news, BioNexus Gene Lab Corp reported substantial developments. The company announced the immediate resignation of two board members, Mr. Wei Foong Lim and Mr. Koon Wai Wong, who also stepped down from their roles in the Audit Committee and the Corporate Governance and Nominating Committee.
Additionally, BioNexus disclosed potential unauthorized proxy solicitation impacting its recent Annual Meeting, with key proposals such as the 2024 Stock Incentive Plan and a reverse stock split of common stock rejected by shareholders.
BioNexus has also been proactive in strategic partnerships and investments. The company collaborated with Singapore's VITARRAY Global Pte. Ltd to provide mRNA dynamic gene detection services in Southeast Asia, which could potentially reduce testing costs by over 25%.
Furthermore, BioNexus invested $450,000 through its subsidiary, Chemrex Corporation, to initiate color paste production for the composite industry, potentially increasing Chemrex's profit margins.
The company revised its corporate bylaws, changing the quorum requirement for stockholder meetings from a majority to one-third of the outstanding shares entitled to vote.
Lastly, BioNexus partnered with Malaysia's Co-Investment Fund (MyCIF) to invest approximately $390,000 in healthcare technology firm Ascension Innovation Sdn Bhd (AISB), supporting Malaysia's National Electronic Medical (TASE:PMCN) Records Plan and the deployment of AISB's AI-driven healthcare platform, aiCMS. These are the recent developments for BioNexus Gene Lab Corp."
InvestingPro Insights
As BioNexus Gene Lab Corp (BGLC) faces potential delisting from Nasdaq, InvestingPro data provides additional context to the company's financial situation. The company's market capitalization stands at a modest $6.38 million, reflecting its current challenges. BGLC's price-to-book ratio of 0.66 indicates that the stock is trading below its book value, which aligns with the InvestingPro Tip noting that it's "trading at a low Price / Book multiple."
The company's financial health appears precarious, with revenue for the last twelve months as of Q2 2024 at $9.18 million, showing a decline of 11.35% over the same period. This decline is even more pronounced in the quarterly figures, with a 23.07% revenue drop in Q2 2024. These metrics support the InvestingPro Tip that BGLC is "quickly burning through cash."
InvestingPro Tips also highlight that the stock price has "fallen significantly over the last three months" and has "taken a big hit over the last six months," with total returns of -20.35% and -39.83% respectively. This downward trend underscores the urgency of the company's efforts to maintain its Nasdaq listing.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for BGLC, providing deeper insights into the company's financial position and market performance.
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