CHICAGO, IL – Exicure , Inc. (NASDAQ:XCUR), a pharmaceutical company, disclosed in a recent SEC filing that it has entered into two significant debt-for-equity exchange agreements. On Thursday, the company reached an agreement with DGP Co., Ltd., its largest shareholder, to convert a $700,000 promissory note into 237,233 shares of common stock at a conversion price of $3.00 per share. Additionally, an individual note holder agreed to convert a $300,000 note into 101,991 shares, also at $3.00 per share.
These transactions, which are exempt from the usual registration requirements under the Securities Act of 1933, are aimed at satisfying the debts in full, including accrued and unpaid interest. The shares issued in these exchanges will not be publicly offered, relying on Section 4(a)(2) of the Securities Act.
In another development, Exicure announced today that it has regained compliance with Nasdaq's minimum bid price requirement. The company's common stock has maintained a closing bid price of $1.00 or higher for 10 consecutive trading sessions. This achievement ensures Exicure's continued listing on the Nasdaq exchange.
The company, previously known as Max-1 Acquisition Corp before its name change on February 21, 2017, operates out of its headquarters at 2430 N. Halsted St., Chicago, IL. Exicure's restoration of Nasdaq compliance and its recent financial maneuvers reflect its ongoing efforts to strengthen its balance sheet and shareholder value.
In other recent news, Exicure Inc., a biotechnology firm, announced a 1-for-5 reverse stock split to regain compliance with Nasdaq's listing requirements. This decision was approved by Exicure's stockholders and the company's Board of Directors, reducing the total number of outstanding shares from approximately 8.65 million to about 1.73 million. Despite the restructuring, the company's percentage ownership remains unchanged.
Exicure has also been granted an extension by the Nasdaq Hearings Panel to meet the continued listing requirements by September 16, 2024, amid challenges with its Nasdaq listing due to filing delays. In addition, the company adjourned its Special Meeting of Stockholders due to insufficient votes to reach a quorum, encouraging stockholders who have not yet cast their votes to do so promptly.
In a recent annual meeting of stockholders, all four director nominees were elected to the board and the appointment of Marcum LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified. These developments come as Exicure suspends clinical and development activities and explores strategic alternatives to enhance stockholder value.
The company's future listing depends on its ability to rectify the current deficiencies and meet the Panel's conditions within the specified timeframe.
InvestingPro Insights
In light of Exicure's recent financial activities, it's worth noting the company's current market dynamics according to InvestingPro data. With a market capitalization of $2.7 million, Exicure is navigating through challenging financial waters. The company's revenue for the last twelve months as of Q2 2024 stands at $0.5 million, which represents a staggering decline of 97.9%. This is reflected in the company's operating income margin, which is deeply negative at -1193.2%. Moreover, the stock's performance has been notably turbulent, as indicated by a one-month price total return of -37.84%.
Two InvestingPro Tips provide additional context to Exicure's situation. Firstly, the stock is known to trade with high price volatility, which aligns with the significant fluctuations in its price total returns. Secondly, analysts do not anticipate the company will be profitable this year, a perspective that is supported by the steep negative operating income margin. For investors considering Exicure, these insights are crucial, and there are more tips available on InvestingPro that could guide investment decisions. In fact, there are 11 additional InvestingPro Tips available for Exicure, which investors can access for a comprehensive analysis of the company's prospects.
Despite the recent positive news about regaining Nasdaq compliance, these financial metrics and insights from InvestingPro suggest that Exicure's path to financial stability may still be fraught with challenges. Investors should consider this data alongside the company's strategic decisions to fully understand the potential risks and rewards associated with Exicure's stock.
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