Avenue Therapeutics (NASDAQ:ATXI), Inc., a pharmaceutical company based in Bay Harbor Islands, Florida, with a current market capitalization of just $4.07 million, has been notified by The Nasdaq Stock Market LLC of its failure to comply with the minimum stockholders' equity requirement, which may lead to the delisting of its common stock.
The Nasdaq Capital Market requires companies to maintain stockholders' equity of at least $2,500,000. However, Avenue's Quarterly Report on Form 10-Q for the period ended September 30, 2024, showed stockholders' equity of only $1,652,000.
The delisting notice, received on Monday, November 26, 2024, follows a June 3, 2024 decision by a Nasdaq Hearings Panel, which had confirmed Avenue's compliance with the equity requirement and imposed a one-year monitoring period until May 21, 2025. This monitoring period obligates Nasdaq to issue a Delist Determination Letter if compliance is not maintained.
Despite the notice, trading of Avenue's common stock on The Nasdaq Capital Market will continue under the ticker symbol "ATXI", with shares currently trading at $2.15. The company has until December 3, 2024, to request a hearing before an independent Hearings Panel to appeal the delisting decision. Avenue intends to timely request such a hearing, which will stay the delisting process until the hearing's conclusion and any extension period granted thereafter.
In other recent news, Avenue Therapeutics, a pharmaceutical firm, has disclosed the granting of equity to its key executives under the company's 2015 Incentive Plan. CEO Alexandra MacLean received 170,000 restricted stock units (RSUs), and Interim Principal Financial (NASDAQ:PFG) Officer and Chief Operating Officer David Jin was granted 65,000 RSUs.
These awards, approved by the Compensation Committee and the Board of Directors, are set to vest in four equal installments over the next two years, contingent on continuous service.
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