Alzamend Neuro Regains Compliance with Nasdaq’s Minimum Bid Price Requirement

Rhea-AI Summary

Alzamend Neuro (Nasdaq: ALZN) has regained compliance with Nasdaq's Minimum Bid Price Requirement, as announced on July 30, 2024. The company's common stock maintained a closing bid price of at least $1.00 per share for ten consecutive trading days, meeting the requirement on July 29, 2024. However, Alzamend still faces challenges regarding the minimum Market Value of Listed Securities (MVLS) requirement.

Despite initially failing to meet the $35 million MVLS requirement, Alzamend appealed Nasdaq's delisting determination. A Hearings Panel granted the company an extension until September 23, 2024, to demonstrate compliance with the alternative requirement of stockholder equity of at least $2.5 million or meet another listing standard to maintain its Nasdaq listing.

Positive

• Regained compliance with Nasdaq's Minimum Bid Price Requirement
• Granted extension by Hearings Panel to maintain Nasdaq listing until September 23, 2024

Negative

• Failed to meet $35 million minimum Market Value of Listed Securities (MVLS) requirement
• Must demonstrate compliance with $2.5 million stockholder equity requirement or alternative listing standard by September 23, 2024 to avoid delisting

Insights

Financial Analyst

The news of Alzamend Neuro regaining compliance with Nasdaq's Minimum Bid Price Requirement is a positive development, but it's important to view this in the broader context of the company's listing challenges. While meeting the $1.00 per share minimum is a step in the right direction, Alzamend still faces a more significant hurdle with the Market Value of Listed Securities (MVLS) requirement.

The company's failure to meet the $35 million MVLS threshold earlier this year led to a delisting determination, which Alzamend has appealed. The Hearings Panel has granted an extension until September 23, 2024, for the company to demonstrate compliance with the alternative requirement of $2.5 million in stockholder equity. This presents a critical challenge for Alzamend in the coming months.

From an investor's perspective, this situation raises several concerns:

• The company's market capitalization remains below the standard Nasdaq threshold, indicating potential investor skepticism about its prospects.
• The need to meet the stockholder equity requirement may lead to dilutive capital raising activities, which could negatively impact existing shareholders.
• The ongoing listing uncertainties may create volatility in the stock price and affect the company's ability to attract institutional investors.

While regaining compliance with the minimum bid price is a positive sign, it doesn't address the underlying financial challenges facing Alzamend. Investors should closely monitor the company's progress towards meeting the stockholder equity requirement and evaluate any strategic moves made to strengthen its financial position before the September deadline.

Biotech Industry Analyst

Alzamend Neuro's struggle to maintain its Nasdaq listing is symptomatic of broader challenges facing early-stage biopharmaceutical companies, particularly those focused on complex neurological disorders like Alzheimer's disease. The company's pipeline, which includes treatments for Alzheimer's, bipolar disorder, major depressive disorder and PTSD, represents a high-risk, high-reward proposition typical of the biotech sector.

Key considerations for investors include:

• Clinical progress: The company's ability to advance its candidates through clinical trials will be important for building investor confidence and potentially improving its market valuation.
• Cash runway: Given the capital-intensive nature of drug development, Alzamend's cash position and burn rate are critical factors that could influence its ability to meet Nasdaq's stockholder equity requirement.
• Competitive landscape: The Alzheimer's drug market has seen recent breakthroughs, potentially raising the bar for new entrants. Alzamend's diversified pipeline across multiple neurological disorders may help mitigate some risk.

The company's focus on novel treatments for significant unmet medical needs could attract partnership or acquisition interest from larger pharmaceutical companies. However, this potential is balanced against the high failure rate in neurological drug development.

Investors should closely monitor upcoming clinical milestones and any strategic partnerships or financing activities that could bolster Alzamend's financial position and market standing. The next few months will be critical in determining whether the company can secure its Nasdaq listing and continue advancing its pipeline without significant disruption.

ATLANTA--(BUSINESS WIRE)-- Alzamend Neuro, Inc. (Nasdaq: ALZN) (“Alzamend”), a clinical-stage biopharmaceutical company focused on developing novel products for the treatment of Alzheimer’s disease (“Alzheimer’s”), bipolar disorder (“BD”), major depressive disorder (“MDD”) and post-traumatic stress disorder (“PTSD”), today announced that it has received a notification letter (the “Compliance Notice”) from the Listing Qualifications Staff of the Nasdaq Stock Market, LLC (“Nasdaq”) dated July 30, 2024, informing Alzamend that it has regained compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). In order to regain compliance with the Minimum Bid Price Requirement, Alzamend’s common stock was required to maintain a closing bid price of at least $1.00 per share for a minimum of ten consecutive trading days. The Minimum Bid Price Requirement was met on July 29, 2024. Accordingly, in the Compliance Notice, Nasdaq stated that the matter is now closed.

The Compliance Notice is unrelated to the previously disclosed notice received by Alzamend from Nasdaq on September 26, 2023 regarding the minimum Market Value of Listed Securities (“MVLS”) for Alzamend’s common stock being below the $35 million minimum MVLS requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(2) (the “MVLS Rule”). On March 26, 2024, Alzamend was notified by Nasdaq that it had not regained compliance with the MVLS Rule. As a result, Nasdaq determined to delist Alzamend’s common stock. Alzamend appealed the determination to a Hearings Panel (the “Panel”). As previously disclosed, the Panel granted Alzamend’s request to continue its listing on Nasdaq, subject to Alzamend demonstrating compliance, on or before September 23, 2024, with Nasdaq Listing Rule 5550(b)(1), which requires stockholder equity of at least $2.5 million (or an alternative listing standard), and satisfying all applicable requirements for continued listing on Nasdaq.

About Alzamend Neuro

Alzamend is a clinical-stage biopharmaceutical company focused on developing novel products for the treatment of Alzheimer’s, BD, MDD and PTSD. Our mission is to rapidly develop and market safe and effective treatments. Our current pipeline consists of two novel therapeutic drug candidates, AL001 - a patented ionic cocrystal technology delivering lithium via a therapeutic combination of lithium, salicylate and L-proline, and ALZN002 - a patented method using a mutant-peptide sensitized cell as a cell-based therapeutic vaccine that seeks to restore the ability of a patient’s immunological system to combat Alzheimer’s by removing beta-amyloid from the brain. The latter is a second-generation active-immunity approach designed to mitigate the disadvantages of approved passive immunity marketed antibody products, particularly by reducing the required frequency and costs of dosing associated with antibody products. Both of our product candidates are licensed from the University of South Florida Research Foundation, Inc. pursuant to royalty-bearing exclusive worldwide licenses.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and Alzamend undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect Alzamend’s business and financial results are included in Alzamend’s filings with the U.S. Securities and Exchange Commission. All filings are available at www.sec.gov and on Alzamend’s website at www.Alzamend.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731640799/en/

Email: Info@Alzamend.com or call: 1-844-722-6333

Source: Alzamend Neuro, Inc.

FAQ

What Nasdaq requirement did Alzamend Neuro (ALZN) regain compliance with?

Alzamend Neuro regained compliance with Nasdaq's Minimum Bid Price Requirement, which requires a closing bid price of at least $1.00 per share for a minimum of ten consecutive trading days.

What is the deadline for Alzamend Neuro (ALZN) to meet Nasdaq's listing requirements?

Alzamend Neuro has until September 23, 2024, to demonstrate compliance with Nasdaq Listing Rule 5550(b)(1), which requires stockholder equity of at least $2.5 million, or meet an alternative listing standard.

What is the minimum Market Value of Listed Securities (MVLS) requirement that Alzamend Neuro (ALZN) failed to meet?

Alzamend Neuro failed to meet the $35 million minimum Market Value of Listed Securities (MVLS) requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(2).

How did Alzamend Neuro (ALZN) avoid immediate delisting from Nasdaq?

Alzamend Neuro appealed Nasdaq's delisting determination to a Hearings Panel, which granted the company an extension to continue its listing subject to meeting specific compliance requirements by September 23, 2024.