BOSTON - TransCode Therapeutics (NASDAQ:RNAZ) has disclosed plans to potentially execute a reverse stock split, pending shareholder approval at its Annual Meeting on June 13. The proposal aims to maintain the company's listing on The Nasdaq Capital Market following a notification from Nasdaq about a possible delisting due to the stock not meeting the Minimum Bid Requirement.
The biopharmaceutical company, specializing in RNA-based therapies, revealed that its common stock had not closed at or above $1.00 per share for any ten-day period ending on May 6, which is a requirement for continued listing on the Nasdaq exchange. Although the stock price did close above the $1.00 threshold for four consecutive days through May 10, there is no assurance that this will influence the Nasdaq Panel's decision.
TransCode has announced its intention to appeal the delisting recommendation by requesting a Nasdaq Panel Hearing. The authorization for a reverse stock split is being sought as a last resort to demonstrate to the Panel that the company has a plan to comply with Nasdaq's listing standards. However, the company's board and management have expressed that they do not wish to carry out the reverse split unless absolutely necessary and that there is no guarantee the authorization will prevent the delisting.
The company's statement emphasized the belief that remaining listed on Nasdaq is valuable for future prospects and that they are committed to taking every possible action to avoid delisting. This news comes as part of a broader effort by TransCode Therapeutics to align with compliance requirements and secure its position in the public market.
The information is based on a press release statement from TransCode Therapeutics.
InvestingPro Insights
Amidst TransCode Therapeutics' (NASDAQ:RNAZ) strategic efforts to maintain its Nasdaq listing, recent data from InvestingPro paints a nuanced picture of the company's financial health and market performance. With a market capitalization of just $8.61 million, the company is relatively small in the biopharmaceutical space. This size could influence its ability to weather the challenges of meeting Nasdaq's Minimum Bid Requirement, especially considering the company's significant operating loss of $19.42 million over the last twelve months as of Q4 2023.
InvestingPro Tips suggest that RNAZ holds more cash than debt, which is a positive sign for liquidity. However, the company is quickly burning through cash, which raises concerns about its financial sustainability. The stock's recent performance has shown significant volatility, with strong returns over the last week and month, as indicated by a 73.07% and 126.94% price total return respectively. Yet, it's important to note that the stock has taken a substantial hit over the last six months, with a price total return of -89.05%.
Moreover, the stock is considered to be in overbought territory according to the Relative Strength Index (RSI), which could suggest a potential pullback in the near future. The absence of dividend payouts to shareholders reflects a strategy of retaining earnings for internal growth or due to a lack of sufficient profits to distribute.
Investors monitoring TransCode's appeal to the Nasdaq Panel Hearing may find additional insights with InvestingPro, which currently lists 15 more InvestingPro Tips for RNAZ. For those seeking a deeper analysis, use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access comprehensive metrics and expert insights.
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