EDISON, NJ – Hepion Pharmaceuticals, Inc. (NASDAQ:HEPA), a biopharmaceutical company, has received a notice from the Nasdaq Stock Market on Monday, indicating non-compliance with the exchange's minimum bid price requirement. The company's stock has been trading below the required $1.00 per share threshold for the past 30 consecutive business days.
Despite the notice, Hepion's common stock continues to be listed and is actively trading on the Nasdaq Capital Market. The company has been granted a 180-day grace period, until March 3, 2025, to regain compliance with the minimum bid price rule. Compliance can be achieved if the stock's closing bid price reaches or exceeds $1.00 per share for at least 10 consecutive business days within this period.
Should Hepion Pharmaceuticals fail to meet the requirement by the deadline, it may be eligible for an additional 180-day period to regain compliance. Failure to comply after this extension could lead to delisting from Nasdaq, although the company would have the right to appeal the decision.
The company, headquartered at 399 Thornall Street in Edison, New Jersey, is considering all available options to address the issue and intends to monitor its share price closely. Hepion Pharmaceuticals was previously known as ContraVir Pharmaceuticals, Inc. and underwent a name change in August 2013.
The article is based on an 8K filing.
In other recent news, Pharma Two B Ltd. and Hepion Pharmaceuticals, Inc. have jointly filed for a proposed merger, a key development in their plans to operate under the Pharma Two B name. The merger is expected to close in the fourth quarter of 2024, pending approval by shareholders and regulatory authorities. Pharma Two B's lead product candidate, P2B001, a promising treatment for Parkinson's Disease, will be a primary focus of the combined company.
Concurrent with the merger's closing, an $11.5 million private financing will adjust the ownership distribution, with Pharma Two B equity-holders owning approximately 85% of the combined entity, and Hepion shareholders, the remaining 15%.
The merger is expected to propel Pharma Two B's P2B001 treatment for Parkinson’s disease towards a New Drug Application submission planned for the first half of 2026.
Hepion Pharmaceuticals has also announced significant changes in its executive leadership, with John Cavan stepping down from his roles as interim CEO and CFO. John Brancaccio, the company's executive chairman, has assumed these roles in the interim.
InvestingPro Insights
As Hepion Pharmaceuticals navigates the challenges of meeting Nasdaq's minimum bid price requirement, a closer look at the company's financial health and stock performance offers valuable context. According to recent data from InvestingPro, Hepion's market capitalization stands at a modest $4.46 million. The company's stock price has indeed been under significant pressure, with a previous close at $0.77, which is a stark 89.68% decline from the previous year's trading, underscoring the urgency for the company to address its stock price and compliance with Nasdaq's requirements.
InvestingPro Tips highlight several critical aspects of Hepion's financial situation. The company holds more cash than debt on its balance sheet, which could provide some financial flexibility in these challenging times. However, the company is also quickly burning through its cash reserves, and with weak gross profit margins, the path to profitability remains strenuous. Notably, analysts do not expect Hepion to be profitable this year, and the stock's valuation implies a poor free cash flow yield. For those considering the stock's potential for a turnaround, it's worth noting that while the stock has taken a significant hit over the last six months, there has been a strong return over the last month.
Investors interested in a deeper analysis of Hepion Pharmaceuticals can find additional InvestingPro Tips at https://www.investing.com/pro/HEPA, which may further aid in assessing the company's prospects and investment potential.
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