SAN DIEGO, CA – Dermata Therapeutics , Inc. (NASDAQ:DRMA), a pharmaceutical company with a current market capitalization of $7.06 million, has received a delisting warning from The Nasdaq Capital Market due to non-compliance with the minimum stockholders’ equity requirement. On Monday, the company disclosed in a recent SEC filing that its equity fell short of the Nasdaq’s $2.5 million threshold, reporting approximately $1.6 million in its 2024 annual report. According to InvestingPro data, while the company maintains a positive current ratio of 1.79 and holds more cash than debt, its overall financial health score remains fair at 1.77 out of 5.
The notice, dated today, does not immediately affect Dermata’s listing. The company’s stock and warrants, identified by the tickers DRMA and DRMAW respectively, will continue trading on the Nasdaq. Despite recent challenges, the stock has shown some resilience with a 12.5% return over the past week and trades at $1.35, though still significantly below its 52-week high of $6.67. Dermata has been given 45 days, until May 9, 2025, to submit a plan to Nasdaq outlining how it will regain compliance. If Nasdaq accepts the plan, Dermata may be granted an extension until September 21, 2025, to meet the requirements.
Dermata is currently considering options to address the equity shortfall and plans to submit its compliance strategy within the given timeframe. However, the company cautions that there is no guarantee its plan will be accepted by Nasdaq. If Dermata fails to regain compliance or meet other listing requirements by the deadline, and its plan is not approved, its securities may be delisted. The company would then have the opportunity to appeal and request a hearing for an extension of up to 180 days to comply.
The information regarding Dermata’s potential delisting and efforts to regain compliance is based on a press release statement filed with the SEC. Dermata’s future on the Nasdaq Capital Market remains uncertain as it works to address the equity deficiency and maintain its listing status.
In other recent news, Dermata Therapeutics announced a private placement transaction expected to raise approximately $2.55 million in gross proceeds. This deal involves the sale of over 2 million shares and warrants, priced at $1.27 each, with warrants exercisable upon stockholder approval and valid for five years. Key insiders, including the CEO, CFO, and board members, are participating under the same terms as external investors. H.C. Wainwright & Co. is serving as the exclusive placement agent for this offering. The company plans to use the net proceeds for general corporate purposes, such as research, clinical trials, and potential strategic investments or acquisitions. The securities involved have not been registered under the Securities Act of 1933, which imposes restrictions on their sale in the U.S. Dermata has agreed to file a resale registration statement for these securities. This funding effort aligns with Dermata’s ongoing development of its lead product candidate, Xyngari™, for conditions like acne, psoriasis, and rosacea.
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