Applied DNA Sciences Inc . (NASDAQ:APDN), a provider of molecular technologies, has received a notice from the Nasdaq Stock Market indicating non-compliance with the exchange's minimum bid price requirement. The notification, dated Monday, states that the company's stock has not maintained the required $1.00 minimum bid price for 30 consecutive business days.
The company, headquartered in Stony Brook, New York, has been given 180 days, until May 12, 2025, to address the issue and regain compliance. To do so, Applied DNA's common stock must close at $1.00 or higher for at least ten consecutive business days, though Nasdaq may discretionarily extend this period.
If compliance is not achieved by the deadline, Applied DNA may receive an additional 180 days to meet the requirement, provided it meets all other initial listing standards for the Nasdaq Capital Market, except for the bid price. The company would also need to communicate its intention to rectify the deficiency, potentially through a reverse stock split, within ten business days before the May 12 deadline.
Applied DNA previously reported on October 31, 2024, that it had closed an offering of its securities. As per the terms of the securities purchase agreement from this offering, the company is obligated to execute a reverse stock split if it remains non-compliant with Nasdaq's bid price rule after receiving a deficiency notice.
The reverse stock split must occur within 30 days of receiving stockholder approval unless the company regains compliance within that timeframe.
The company has indicated its intention to implement a reverse stock split to regain compliance with the Nasdaq's minimum bid price rule and to adhere to the conditions of the securities purchase agreement unless it becomes compliant within 30 days post-stockholder approval.
This development does not immediately affect Applied DNA's listing on the Nasdaq Capital Market. However, if the company fails to cure the deficiency, or if it is deemed ineligible, Nasdaq will notify the company of its securities' potential delisting. Applied DNA would then have the opportunity to appeal the decision.
The information in this report is based on the company's recent SEC filing.
In other recent news, Applied DNA Sciences has made several noteworthy business moves. The company recently announced a securities offering that is projected to generate approximately $6.5 million before fees and expenses. This offering is expected to support the development of Applied DNA's Therapeutic DNA Production Services and other corporate purposes.
The company has also secured a $500,000 order for its Linea DNA product, continuing a long-term partnership with a global in vitro diagnostics manufacturer.
In addition, the company's shareholders have approved several key proposals, such as the election of directors, the ratification of the company's independent auditor, and the potential for a reverse stock split.
Applied DNA Sciences has also expanded its clinical testing services to detect both Clade I and Clade II of the Mpox virus. The company has partnered with Indus Group, incorporating the CertainT traceability platform into Indus's non-home textile products.
However, analyst firm H.C. Wainwright has lowered their price target for Applied DNA Sciences shares while maintaining a Buy rating.
Lastly, the company received approval from the New York State Department of Health for its pharmacogenomic testing service, TR8, and plans to implement a reverse stock split to comply with Nasdaq's listing rules. These are among the recent developments in the company's operations.
InvestingPro Insights
Applied DNA Sciences' current financial situation aligns with the challenges highlighted in the article. According to InvestingPro data, the company's market capitalization has dwindled to just $1.93 million, reflecting the severe price decline mentioned. The stock's price has plummeted by 98.94% over the past year, with a staggering 93.93% drop in the last six months alone, underscoring the urgency of the Nasdaq compliance issue.
InvestingPro Tips indicate that Applied DNA is "quickly burning through cash" and "not profitable over the last twelve months," which may explain the need for the recent securities offering mentioned in the article. The company's revenue has also seen a significant decline, with a 78.96% decrease in the last twelve months, potentially contributing to its current stock price predicament.
On a slightly positive note, an InvestingPro Tip reveals that Applied DNA "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it navigates these challenges. However, with analysts not anticipating profitability this year and the stock trading with high price volatility, the company faces a tough road ahead in its efforts to regain Nasdaq compliance.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Applied DNA Sciences, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.