BeyondSpring Receives Nasdaq Notice Regarding Minimum Bid Price Requirements

Rhea-AI Summary

BeyondSpring Inc. (NASDAQ: BYSI) received a notification from Nasdaq about non-compliance with the minimum closing bid price requirement, giving the company a 180-day grace period to regain compliance. The stock will continue to trade on Nasdaq during this period.

Positive

• None.

Negative

• The company's non-compliance with the minimum bid price requirement may lead to potential delisting if not resolved within the grace period.

Insights

Financial Analyst

The notice received by BeyondSpring Inc. from Nasdaq regarding non-compliance with the minimum bid price requirement is a significant financial event that warrants close scrutiny by investors. A persistently low share price suggests market apprehensions about the company's future prospects or current financial health. The 180-day grace period to regain compliance may lead to strategic maneuvers such as a reverse stock split, cost restructuring, or efforts to improve operational performance.

For stakeholders, the implications are twofold: there is potential dilution risk if the company opts for a reverse stock split and there may be increased volatility in the stock price as the deadline approaches. Long-term effects could include a shift in investor perception, which might affect the company's ability to raise capital in the future.

In layman's terms, BeyondSpring must boost its stock price above $1 to meet Nasdaq's rules, much like a student must maintain a certain grade point average to avoid being placed on academic probation.

Biotech Industry Analyst

In the context of the biopharmaceutical industry, maintaining Nasdaq listing is crucial for a company's visibility and access to capital. BeyondSpring's non-compliance issue is a red flag that could potentially deter investment until the company proves it can meet the necessary financial metrics. The company's focus on high unmet medical needs is a strategic area within biotech, but it also comes with high R&D costs and long timelines for product development.

The potential benefits of overcoming this hurdle include restored investor confidence and better positioning for future financings. However, the drawbacks of failing to regain compliance could lead to a delisting that would severely limit the company's funding opportunities and partnership potential.

For those unfamiliar with the industry, this situation is akin to a promising start-up facing a critical test of financial stability before it can secure further investment to bring its innovations to market.

NEW YORK, Dec. 18, 2023 (GLOBE NEWSWIRE) -- BeyondSpring Inc. (NASDAQ: BYSI) (“BeyondSpring” or the “Company”), a global clinical-stage biopharmaceutical company focused on using a groundbreaking technology platform for drug discovery and developing innovative therapies to improve clinical outcomes for patients with high unmet medical needs, today announced that on December 14, 2023, it received a written notification from The Nasdaq Stock Market LLC (“Nasdaq”) that the Company is not in compliance with the requirement to maintain a minimum closing bid price of $1.00 per share, as set forth in Nasdaq Listing Rule 5550(a)(2), because the closing bid price of the Company’s ordinary shares (the “Ordinary Shares”) was below $1.00 per share for 31 consecutive business days. The notification letter does not result in the immediate delisting of the Company’s Ordinary Shares and has no current immediate effect on the listing or trading of the Company’s Ordinary Shares on Nasdaq.

Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided with a compliance period of 180 calendar days from the date of the notification letter, or until June 11, 2024, to regain compliance with the minimum bid price requirement. During this period, the Company’s Ordinary Shares will continue to trade on Nasdaq. If at any time before June 11, 2024, the bid price of the Company’s Ordinary Shares closes at or above $1.00 per share for a minimum of ten consecutive trading days, Nasdaq will provide written confirmation of compliance and this matter will be closed. In the event the Company does not regain compliance by June 11, 2024, subject to the determination by the staff of Nasdaq, the Company may be eligible for an additional 180-day compliance period.

The notification letter does not affect the Company’s business operations, and the Company is considering all available options to regain compliance with the listing rules within the prescribed grace period.

About BeyondSpring
BeyondSpring (NASDAQ: BYSI) is a global clinical-stage biopharmaceutical company focused on developing innovative therapies to improve clinical outcomes for patients with high unmet medical needs. The Company is advancing its first-in-class lead asset, Plinabulin, as a direct anti-cancer agent in various cancer indications and to prevent chemotherapy-induced neutropenia. Its pipeline also includes three preclinical immuno-oncology assets. Additionally, BeyondSpring’s subsidiary, SEED Therapeutics, leverages a proprietary targeted protein degradation (TPD) drug discovery platform and has an initial R&D collaboration with Eli Lilly. Learn more by visiting https://beyondspringpharma.com.

Investor Contact:
IR@beyondspringpharma.com

Media Contact:
PR@beyondspringpharma.com

FAQ

What is the ticker symbol for BeyondSpring Inc.?

The ticker symbol for BeyondSpring Inc. is BYSI.

What notification did BeyondSpring Inc. receive from Nasdaq?

BeyondSpring Inc. received a notification from Nasdaq about non-compliance with the minimum closing bid price requirement.

What is the compliance period given to BeyondSpring Inc. by Nasdaq?

Nasdaq has provided BeyondSpring Inc. with a 180-day compliance period to regain compliance with the minimum bid price requirement.

Will BeyondSpring Inc. be delisted immediately due to the notification?

The notification letter does not result in the immediate delisting of BeyondSpring Inc.'s Ordinary Shares and has no current immediate effect on the listing or trading of the Company’s Ordinary Shares on Nasdaq.

How long does BeyondSpring Inc. have to regain compliance with the minimum bid price requirement?

BeyondSpring Inc. has until June 11, 2024, to regain compliance with the minimum bid price requirement.

What happens if BeyondSpring Inc. does not regain compliance by June 11, 2024?

If BeyondSpring Inc. does not regain compliance by June 11, 2024, the company may be eligible for an additional 180-day compliance period, subject to the determination by the staff of Nasdaq.