Citius Pharmaceuticals (NASDAQ:CTXR), Inc. has been granted an extension by a Nasdaq Hearings Panel to regain compliance with the exchange's minimum bid price requirement, according to a recent SEC filing. The New Jersey-based pharmaceutical company has until December 3, 2024, to meet the Nasdaq Capital Market's minimum bid price rule.
On September 12, 2023, Citius received a notification from Nasdaq concerning non-compliance with the $1.00 minimum bid price rule. The company was initially given until March 11, 2024, to rectify the situation. After failing to comply by the initial deadline, Citius was granted an extension through September 9, 2024, which it also did not meet, leading to a delisting determination letter from Nasdaq on September 10, 2024.
Subsequently, Citius requested and was granted a hearing before a Nasdaq Hearings Panel, which took place on October 29, 2024. The hearing resulted in an additional grace period, allowing the company to maintain its listing while it works to meet the exchange's requirements.
Citius, which operates under the ticker NASDAQ:CTXR, must now focus on raising its share price above the $1.00 minimum bid price by the newly set December deadline. The company has been instructed to provide prompt notification of any significant events during this period that may affect its compliance status.
The SEC filing includes forward-looking statements highlighting the uncertainty of whether Citius will be able to regain compliance with the Nasdaq Listing Rules. The company's most recent Annual Report on Form 10-K for the year ended September 30, 2023, details the risks and uncertainties associated with its efforts to maintain compliance.
Investors are closely monitoring the situation, as the company's ability to satisfy Nasdaq's requirements is crucial for its continued listing on the exchange. The information in this article is based on a press release statement filed with the SEC.
In other recent news, Citius Pharmaceuticals has made several significant developments. The company announced the extension of an employment agreement with Myron Holubiak, the Executive Vice Chairman, and certain warrant agreements, which could provide approximately $2.4 million in cash proceeds if fully exercised. Citius Pharmaceuticals has also successfully deferred a significant FDA milestone payment for its product, LYMPHIR™, with the specifics of the deferral remaining undisclosed.
The company also faces potential delisting from the Nasdaq Capital Market due to non-compliance with the minimum bid price requirement, but intends to request a hearing to delay any delisting action. Citius Pharmaceuticals received FDA approval for LYMPHIR™, marking its first FDA-approved product.
The company also announced a merger with TenX Keane Acquisition, with Citius holding approximately 90% of the new entity, Citius Oncology, Inc. This merger is expected to enhance the potential commercialization of LYMPHIR™. Finally, Citius Pharmaceuticals reported successful Phase 3 trials of Mino-Lok, an antibiotic lock solution, and received a Buy rating from EF Hutton. These are all recent developments from the company.
InvestingPro Insights
As Citius Pharmaceuticals (NASDAQ:CTXR) works to meet Nasdaq's minimum bid price requirement, recent InvestingPro data offers additional context for investors. The company's market capitalization stands at $69.76 million, reflecting its current valuation in the market.
InvestingPro Tips highlight that Citius holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates this challenging period. Additionally, the company has seen a significant return over the last week, with a 38.96% price increase, potentially indicating renewed investor interest.
However, it's important to note that analysts do not anticipate the company will be profitable this year, aligning with the challenges outlined in the article. This is further supported by the negative operating income of -$41.07 million over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide valuable insights into Citius Pharmaceuticals' financial health and market position.
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