ASLAN Pharmaceuticals Announces Receipt of Nasdaq Deficiency Notice Regarding Minimum Bid Price Requirement
- None.
- The company received a notice of non-compliance with the minimum bid price requirement, which may lead to delisting if not resolved within 180 days.
Insights
The notice received by ASLAN Pharmaceuticals from Nasdaq regarding non-compliance with the minimum bid price requirement is a critical financial health indicator for the company. The bid price reflects investor sentiment and market valuation of a company's stock and failure to maintain the Nasdaq's stipulated threshold could indicate a lack of investor confidence or underperformance relative to market expectations. In the short-term, this notice serves as a warning signal to investors and may affect the stock's liquidity as some institutional investors have mandates that prevent them from holding stocks that do not comply with exchange requirements.
In the long-term, if ASLAN Pharmaceuticals fails to regain compliance, the potential delisting from the Nasdaq Capital Market could significantly reduce the stock's visibility in the market, potentially leading to lower trading volumes and increased volatility. Delisting can also make it more challenging for a company to raise capital through equity financing. Therefore, the company's strategic moves to address this issue, such as a reverse stock split or operational improvements to bolster the stock price, will be critical to monitor in the coming months.
ASLAN Pharmaceuticals' current situation highlights the competitive and regulatory pressures within the biopharmaceutical industry. The industry is characterized by high research and development costs, stringent regulatory environments and a need for continuous innovation. The notice of non-compliance may not directly affect the company's operations or innovation capabilities, but it does have indirect implications for its corporate image and investor relations. The perception of financial stability is essential for stakeholder confidence, especially for a biopharmaceutical company that relies on sustained investment for long-term projects such as drug development.
Furthermore, the company's ability to regain compliance will likely depend on its operational performance and market reception of its pipeline products. Investors and stakeholders will be interested in the company's strategies for increasing its stock value, which could include business milestones like advancing clinical trials or securing strategic partnerships. The company's response to this challenge will be indicative of its agility and resilience in the face of market and regulatory hurdles.
From a legal and regulatory perspective, ASLAN Pharmaceuticals' receipt of the Notice from Nasdaq is a procedural outcome of the exchange's oversight function. The Nasdaq Listing Rules are designed to maintain fair and orderly markets and the minimum bid price requirement acts as a quality control mechanism to ensure that only financially viable companies are traded on the platform. The 180-day grace period provided to ASLAN Pharmaceuticals to regain compliance is a standard regulatory remedy that affords the company an opportunity to rectify its market standing without immediate punitive measures such as delisting.
The company's next steps will be governed by both internal policy decisions and external advisory to ensure that any actions taken to regain compliance are within the legal frameworks of market regulations. It is also important to note that during this period, the company must maintain transparency with its stakeholders and adhere to all other reporting and regulatory requirements set forth by the Securities and Exchange Commission, which governs disclosure and other legal obligations for publicly traded companies.
SAN MATEO, Calif. and SINGAPORE, Jan. 08, 2024 (GLOBE NEWSWIRE) -- ASLAN Pharmaceuticals (NASDAQ: ASLN) ("ASLAN" or the "Company"), announced today that on January 5, 2024, it received a written notice (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company is not in compliance with the US
The Notice states that under Listing Rule 5810(c)(3)(A) the Company is provided with a period of 180 calendar days, or until July 3, 2024, to regain compliance with the Listing Rules. To regain compliance with the Listing Rules, the closing bid price of the Company's ADSs must meet or exceed US
The Company intends to continue to monitor the closing bid price of its ADSs between now and July 3, 2024, and to evaluate its available options to regain compliance.
The Company fully intends to resolve the deficiency and regain compliance with the Listing Rules.
About ASLAN Pharmaceuticals
ASLAN Pharmaceuticals (Nasdaq: ASLN) is a clinical-stage, immunology-focused biopharmaceutical company developing innovative treatments to transform the lives of patients. ASLAN is developing eblasakimab, a potential first-in-class antibody targeting the IL-13 receptor in moderate-to-severe atopic dermatitis (AD) with the potential to improve upon current biologics used to treat allergic disease, and has reported positive topline data from a Phase 2b dose-ranging study in moderate-to-severe AD patients. ASLAN is also developing farudodstat, a potent oral inhibitor of the enzyme dihydroorotate dehydrogenase (DHODH) as a potential first-in-class treatment for alopecia areata (AA) in a Phase 2a, proof-of-concept trial with an interim readout expected in mid-2024. ASLAN has teams in San Mateo, California, and in Singapore. For additional information please visit the Website or follow ASLAN on LinkedIn.
Forward looking statements
This release contains forward-looking statements. These statements are based on the current beliefs and expectations of the management of ASLAN Pharmaceuticals Limited and/or its affiliates (the "Company"). These forward-looking statements may include, but are not limited to, statements regarding the Company’s intention to resolve the deficiency and regain compliance with the Nasdaq Listing Rules. The Company’s estimates, projections and other forward-looking statements are based on management's current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations, or financial performance, and inherently involve significant known and unknown risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of many risks and uncertainties, which include, unexpected safety or efficacy data observed during preclinical or clinical studies; clinical site activation rates or clinical trial enrolment rates that are lower than expected; the impact of health epidemics or pandemics, the ongoing conflict between Ukraine and Russia, as well as ongoing conflicts in the Middle East on the Company’s business and the global economy; general market conditions; changes in the competitive landscape; and the Company’s ability to obtain sufficient financing to fund its strategic and clinical development plans. Other factors that may cause actual results to differ from those expressed or implied in such forward-looking statements are described in the Company’s U.S. Securities and Exchange Commission filings and reports (Commission File No. 001- 38475), including the Company’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on March 24, 2023. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections, and other forward-looking statements. Estimates, projections, and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement.
Media and IR contacts
| Emma Thompson Spurwing Communications Tel: +65 6206 7350 Email: ASLAN@spurwingcomms.com | Ashley R. Robinson LifeSci Advisors, LLC Tel: +1 (617) 430-7577 Email: arr@lifesciadvisors.com |
FAQ
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