CHICAGO - Exicure , Inc. (NASDAQ:XCUR), a pharmaceutical preparations company, announced Monday the appointment of two new directors to its Board and the receipt of $1.3 million in funding, following the close of a Purchase Agreement with HiTron Systems Inc.
On Thursday, the Board of Directors at Exicure appointed Andy Yoo and Seung Ik Baik as new members. Yoo, who is also the Chief Executive Officer of HiTron, will serve as a Class I director until the 2027 annual meeting of stockholders, while Baik will serve as a Class III director until the 2026 annual meeting. Neither Yoo nor Baik has any family relationships with existing directors or executive officers of the company, nor are they involved in any material transactions with the company that would require disclosure.
In addition to his directorship, Yoo has been named the Chief Restructuring Officer of Exicure with an employment agreement effective immediately. His role as an officer comes with an annual base salary of $200,000. Both new directors will receive an annual retainer of $20,000 for their services on the Board.
The appointments and Yoo's new role as Chief Restructuring Officer are pursuant to the rights of HiTron under the Purchase Agreement signed on November 12, 2024. The company also plans to enter into its standard form of indemnification agreement with both Yoo and Baik.
In parallel, the company announced the resignations of Hojoon Lee and Eui Yull Hwang from the Board on Thursday for personal reasons. According to the company, their departures were not due to any disagreements with company operations, policies, or practices.
The announcement also included the completion of a financial transaction, with Exicure receiving $1.3 million from HiTron as part of the Purchase Agreement closure.
In other recent news, Exicure, Inc. has been granted an extension by the Nasdaq Hearings Panel to continue its listing on the exchange, with the requirement to demonstrate compliance by December 17, 2024. The company has also converted approximately $1,000,000 of debt into equity and implemented a 1-for-5 reverse stock split, reducing the total number of outstanding shares from approximately 8.65 million to about 1.73 million. Additionally, Exicure entered into two significant debt-for-equity exchange agreements with DGP Co., Ltd., and an individual note holder, converting a total of $1,000,000 in debt into equity.
Despite these efforts, Exicure has suspended its clinical and development activities to evaluate strategic alternatives. At a recent annual meeting of stockholders, all four director nominees were elected to the board and the appointment of Marcum LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified. These are the recent developments in Exicure's operations.
As these developments unfold, Exicure faces the risk of being delisted from the Nasdaq Stock Market if unable to meet the standards.
InvestingPro Insights
Exicure's recent corporate developments come amid a period of significant stock performance and financial challenges. According to InvestingPro data, the company has seen extraordinary returns, with a 1013.94% price total return over the past six months and a 675.53% return in the last month alone. These figures align with the InvestingPro Tip that highlights Exicure's "significant return over the last week" and "strong return over the last month."
However, investors should approach this performance with caution. An InvestingPro Tip indicates that the stock's RSI suggests it's in overbought territory, which could signal a potential pullback. Additionally, the company's financial health presents concerns, as another tip points out that "short-term obligations exceed liquid assets," which may explain the need for the recent $1.3 million funding from HiTron Systems Inc.
The appointment of Andy Yoo as Chief Restructuring Officer is particularly noteworthy in light of the InvestingPro Tip stating that "net income is expected to drop this year." This move suggests that the company is taking active steps to address its financial challenges.
For a more comprehensive analysis, InvestingPro offers 13 additional tips for Exicure, providing investors with a deeper understanding of the company's financial position and market performance.
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