ASLAN Pharmaceuticals Announces Receipt of Nasdaq Delisting Determination; Has Determined Not to Appeal
ASLAN Pharmaceuticals (Nasdaq: ASLN) has announced that it received a delisting determination from Nasdaq on July 9, 2024, due to non-compliance with the $1.00 bid price and $2.5 million stockholders' equity requirements. The company's board has decided not to appeal this decision. ASLAN had previously been notified of these compliance issues and was given time to address them. On July 3, 2024, the company implemented a ratio change for its American Depositary Shares (ADSs), resulting in a closing price above $1.00. However, as of the press release date, the bid price had only closed above $1.00 for five consecutive business days, falling short of the required ten to twenty-day compliance period.
- ADS ratio change resulted in closing price above $1.00 for five consecutive business days
- Received Nasdaq delisting determination
- Non-compliance with $1.00 bid price requirement
- Non-compliance with $2.5 million stockholders' equity requirement
- Decision not to appeal the delisting determination
- Failed to maintain compliance for the required 10-20 consecutive business days
Insights
The delisting of ASLAN Pharmaceuticals from the Nasdaq has a significant negative impact on retail investors. The decision not to appeal indicates that the company recognizes its inability to meet the necessary listing standards, specifically the $1.00 bid price and $2.5 million stockholders’ equity requirement. Delisting often results in decreased liquidity, making it harder for investors to buy and sell shares. Additionally, it generally leads to a loss of visibility and reputation in the market, potentially resulting in a further decline in stock price.
For ASLAN Pharmaceuticals, being removed from Nasdaq means that the stock will likely move to the OTC (over-the-counter) market, where trading is usually less regulated and less transparent. This can add significant risk for investors. Moreover, companies listed on OTC often struggle to attract institutional investors, who tend to avoid such marketplaces.
In the short term, investors should be prepared for increased volatility and potential additional losses. In the long term, the company's ability to secure financing and partnerships may be adversely affected, unless it can regain compliance and relist on a major exchange.
Retail investors should also consider the company’s attempts to rectify the situation, such as their stock ratio change. While this temporarily boosted the stock price, it was insufficient to meet the longer-term criteria for Nasdaq listing. This could be interpreted as a warning sign about the company's broader financial health and operational stability.
The delisting of ASLAN Pharmaceuticals has broader implications in the biopharmaceutical sector. Companies in this industry often rely heavily on investor confidence and financial stability to fund ongoing research and development activities. ASLAN’s inability to maintain these listing requirements raises concerns about its financial health and its ability to sustain clinical trials and bring new treatments to market.
For retail investors, it’s essential to understand that this event could make it more challenging for the company to attract new investments, especially from institutional investors who typically avoid non-listed entities. Additionally, the loss of a major listing often signals operational inefficiencies or financial instability, which might deter potential strategic partners or acquirers.
Investors should also note that other companies in the sector that are in similar clinical stages might face heightened scrutiny, as this incident underscores the importance of financial health alongside scientific progress.
In summary, while the immediate impact is negative, the long-term outlook will depend on how the company manages to navigate this period of financial and operational strain and whether it can restore investor confidence through tangible improvements in its financial metrics and clinical milestones.
SAN MATEO, Calif. and SINGAPORE, July 15, 2024 (GLOBE NEWSWIRE) -- ASLAN Pharmaceuticals (“ASLAN” or the “Company”, Nasdaq: ASLN), a clinical-stage, immunology-focused biopharmaceutical company developing innovative treatments to transform the lives of patients, today announced that on July 9, 2024, the Company was notified by the staff of the Listing Qualifications Department (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq") that, based upon the Company’s non-compliance with the
As previously disclosed, on January 5, 2024, the Staff notified the Company that the bid price for the Company’s American Depositary Shares (“ADSs”) had closed below the minimum
As previously disclosed, effective July 3, 2024, the Company changed the ratio of its ordinary shares, par value
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 currently investigating eblasakimab in dupilumab-experienced, moderate-to-severe AD patients in the TREK-DX Phase 2 trial 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. ASLAN has teams in San Mateo, California, and in Singapore. For additional information please visit the ASLAN 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 the Company. These forward-looking statements may include, but are not limited to, statements regarding the trading price of the Company’s ADSs. 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; risks that future clinical trial results may not be consistent with interim, initial or preliminary results or results from prior preclinical studies or clinical trials; clinical site activation rates or clinical trial enrollment rates that are lower than expected; the impact of health epidemics or pandemics, or geopolitical conflicts on the Company’s operations, research and development and clinical trials and potential disruption in the operations and business of third-party manufacturers, contract research organizations, other service providers and collaborators with whom the Company conducts business; 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 and maintain its listing. 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 April 12, 2024. 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.
ASLAN 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
Why is ASLAN Pharmaceuticals (ASLN) facing delisting from Nasdaq?
What action did ASLAN Pharmaceuticals (ASLN) take to address the low bid price issue?
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