Ensysce Biosciences Inc. (NASDAQ: ENSC) , a pharmaceutical company specializing in preparations, is at risk of being delisted from The Nasdaq Stock Market LLC due to non-compliance with Nasdaq's stockholders’ equity requirement.
On Monday, the company received a notification from Nasdaq's Listing Qualifications Department indicating that its stockholders’ equity had fallen below the minimum threshold of $2.5 million as of June 30, 2024.
In response to the potential delisting, Ensysce Biosciences plans to request a hearing before the Nasdaq Hearings Panel. This action will postpone any delisting procedures until the hearing process is completed. The company is actively seeking ways to regain compliance with Nasdaq's listing standards.
However, there is no guarantee that the Panel will allow the company to continue its listing or that the company will meet compliance criteria within any granted extension period.
The announcement comes as a significant challenge for Ensysce Biosciences, which is incorporated in Delaware and headquartered in La Jolla, California. The company, previously known as Leisure Acquisition Corp. before a name change in 2017, is now tasked with demonstrating its ability to meet Nasdaq's financial requirements to maintain its listing.
As of today, Ensysce Biosciences' stock, which trades under the ticker symbol NASDAQ:ENSC, remains listed on the Nasdaq exchange. The company's management, led by President and Chief Executive Officer Dr. Lynn Kirkpatrick, is expected to present its plan to regain compliance at the forthcoming hearing, the date of which has yet to be announced.
In other recent news, Ensysce Biosciences Inc. announced a collaboration with Purisys LLC to advance its opioid use disorder (OUD) drug candidate, PF9001, towards Investigational New Drug (IND) studies. The partnership aims to streamline the production process for PF9001, a drug developed using Ensysce's proprietary TAAP technology, designed to treat OUD with reduced cardiovascular side effects. This development is part of Ensysce's ongoing efforts to create safer prescription drugs and address the challenges of OUD.
In addition, Ensysce Biosciences has successfully regained compliance with Nasdaq's equity listing requirements, as confirmed by Nasdaq. This ensures the continued listing of Ensysce's common stock on the Nasdaq Capital Market, highlighting the company's commitment to meeting regulatory standards.
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