Celularity Inc, a biotechnology company specializing in pharmaceutical preparations with a market capitalization of $44.23 million, has received a formal notice from the Nasdaq Stock Market LLC concerning its non-compliance with the exchange's continued listing requirements. The company's stock has declined sharply, falling over 27% in the past week. The notice, dated November 21, 2024, was issued following Celularity's failure to file its Quarterly Report on Form 10-Q for the period ending September 30, 2024, within the extended deadline provided by Rule 12b-25.
The company, which is traded under the ticker symbols CELU for its Class A Common Stock and CELUW for its Warrants, had previously acknowledged its inability to meet the filing deadline in a Form 12b-25 Notification of Late Filing with the SEC on November 15, 2024. The extended filing period expired on November 19, 2024, prompting Nasdaq's notification.
Despite the notice, Celularity's securities continue to be listed and traded on the Nasdaq Capital Market. The company is now required to submit a plan to regain compliance by January 20, 2025. According to InvestingPro data, Celularity faces significant financial challenges, with a concerning current ratio of 0.26 and short-term obligations exceeding its liquid assets. If Nasdaq accepts the plan, Celularity will have until May 13, 2025, to fulfill the necessary requirements to maintain its listing.
Celularity has expressed its intention to submit a compliance plan within the 60-day deadline and is currently exploring options to address the issue. However, there is no certainty that the company will achieve compliance within the designated period or maintain its adherence to other Nasdaq listing standards.
This development comes as Celularity, headquartered in Florham Park, New Jersey, operates under the leadership of Chairman and CEO Robert J. Hariri, M.D., Ph.D. The company, formerly known as GX Acquisition Corp., has its fiscal year-end on December 31 and is incorporated in Delaware. InvestingPro analysis suggests the stock is currently trading below its Fair Value, despite ongoing challenges. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better understand the company's outlook. This news is based on a press release statement.
In other recent news, Celularity Inc. has been navigating significant developments. The company has been grappling with Nasdaq delisting due to delayed financial reporting. Despite this, Celularity is making progress on regaining compliance with Nasdaq's listing requirements, with plans to file future reports in a timely manner.
In terms of revenue, Celularity reported over $24 million in net revenue from its biomaterial products in the first half of 2024, and expects more than $9 million in net revenue from the recently acquired Rebound product. These figures are preliminary and subject to change.
In addition to these financial developments, Celularity has been active in product development. Products such as Celularity Tendon Wrap, FUSE Bone Void Filler, and Celularity Placental Matrix are undergoing preliminary FDA assessments.
Moreover, Celularity has recently acquired Rebound, a placental-derived allograft matrix, from Sequence LifeScience, Inc, which is expected to enhance its biomaterial product portfolio.
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