WESTPORT, Conn. - Portage Biotech Inc. (NASDAQ: PRTG), a clinical-stage immuno-oncology company with a market capitalization of just $4.37 million, disclosed on Thursday that it has received a non-compliance notice from The Nasdaq Stock Market. The company's shares have declined nearly 90% year-to-date, according to InvestingPro data, reflecting significant challenges in the biotech sector. The notice, dated December 10, 2024, indicated that the company does not meet the minimum shareholders' equity requirement for continued listing on The Nasdaq Capital Market.
According to the notice, Portage Biotech's shareholders' equity stood at $695,000 as of September 30, 2024, falling short of the required $2.5 million threshold. InvestingPro analysis shows the company maintains a current ratio of 3.08, indicating sufficient liquid assets to meet short-term obligations, despite its overall weak financial health score of 1.29. The company also failed to meet alternative continued listing standards, which include a market value of listed securities of at least $35 million or net income from continuing operations of at least $500,000 in the most recently completed fiscal year or in two of the last three fiscal years.
Despite the notice, trading of the company's ordinary shares continues on The Nasdaq Capital Market under the ticker symbol PRTG. Portage Biotech has been given a 45-day period, until January 24, 2025, to submit a plan to regain compliance with the Shareholders' Equity Requirement or to meet an alternative listing standard. If Nasdaq accepts the plan, the company may be granted up to 180 days from the notice date, until June 8, 2025, to demonstrate compliance.
If Nasdaq does not accept the compliance plan, Portage may face delisting, but the company will have the opportunity to appeal any delisting determination to a Nasdaq hearings panel. There is no guarantee that Portage will be able to regain compliance or maintain compliance with other listing requirements.
The company has recently decided to discontinue its sponsored trial for its invariant natural killer T-cell program and pause further patient accrual to its adenosine trial program. Portage is exploring strategic alternatives, which could include partnering, a sale, a merger, restructurings, a wind down, further financing efforts, or other strategic actions. While the company holds more cash than debt on its balance sheet, InvestingPro subscribers can access 13 additional key insights about Portage's financial position and market performance to better evaluate potential outcomes of these strategic alternatives.
This press release also contains forward-looking statements regarding Portage's intentions and potential outcomes, but actual results could differ materially due to various risks and uncertainties. This article is based on a press release statement from Portage Biotech Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.