Chemomab Therapeutics Regains Compliance With Nasdaq Minimum Bid Price Requirement

Rhea-AI Summary

Chemomab Therapeutics (Nasdaq: CMMB), a clinical-stage biotech company focusing on fibro-inflammatory diseases, has regained compliance with Nasdaq's minimum bid price requirement. The company received a notification letter from Nasdaq confirming that it has met the closing bid price of $1.00 or greater for 10 consecutive business days from July 9 to July 22, 2024. This resolves the non-compliance issue initially reported on November 6, 2023, when Chemomab's American Depositary Shares (ADSs) had fallen below the $1.00 threshold for more than 30 consecutive business days. With this development, Nasdaq has closed the matter, affirming Chemomab's continued listing on the exchange.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Avoided potential delisting from Nasdaq
• Maintained listing on a major stock exchange, potentially improving investor confidence and liquidity

Negative

• None.

Insights

Financial Analyst

Chemomab Therapeutics' regaining of Nasdaq compliance is a positive development for the company, albeit with immediate financial impact. This news primarily affects the company's market visibility and investor confidence rather than its fundamental operations or financials.

The compliance restoration comes after an extended period of share price weakness, which led to the initial Nasdaq notification in November 2023. The company's ability to meet the $1.00 minimum bid requirement for 10 consecutive business days suggests a recent improvement in investor sentiment or potential corporate actions to support the share price.

For investors, this development reduces the risk of a potential delisting, which could have severely impacted liquidity and institutional investment potential. However, it's important to note that maintaining compliance will require sustained share price performance above the $1.00 threshold.

While this news doesn't directly impact Chemomab's drug development progress or financial position, it may improve the company's ability to raise capital in the future, if needed. Nasdaq-listed companies generally have better access to capital markets compared to those trading on over-the-counter exchanges.

Investors should remain focused on Chemomab's clinical progress and cash runway as primary drivers of long-term value, rather than viewing this compliance update as a fundamental change in the company's prospects.

TEL AVIV, Israel, July 26, 2024 (GLOBE NEWSWIRE) -- Chemomab Therapeutics Ltd. (Nasdaq: CMMB) (Chemomab) a clinical stage biotechnology company developing innovative therapeutics for fibro-inflammatory diseases with high unmet need, today announced that it has received a notification letter from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”), informing the Company that it has regained compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2).

Chemomab had previously announced on November 6, 2023, that it was notified by Nasdaq that it was not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2), as the closing bid price of the Company's American Depositary Shares (“ADSs”) had been below $1.00 for more than 30 consecutive business days.

On July 23, 2024, Nasdaq provided confirmation to the Company that for the 10 consecutive business days preceding receipt of the letter, from July 9, 2024 to July 22, 2024, the closing bid price of the ADSs was $1.00 or greater, that the Company has hence regained compliance with Listing Rule 5550(a)(2) and that the matter is now closed.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation, including statements regarding our future financial condition, results of operations, business strategy and plans, and objectives of management for future operations, as well as statements regarding industry trends, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “estimate,” “intend,” “may,” “plan,” “potentially” “will” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, among other things: the risk that the full data set from the CM-101 study or data generated in further clinical trials of CM-101 will not be consistent with the topline results of the CM-101 Phase 2 PSC trial; failure to obtain, or delays in obtaining, regulatory approvals for CM-101 in the U.S., Europe or other territories; failure to successfully commercialize CM-101, if approved by applicable regulatory authorities, in the U.S., Europe or other territories, or to maintain U.S., European or other territory regulatory approval for CM-101 if approved; uncertainties in the degree of market acceptance of CM-101 by physicians, patients, third-party payors and others in the healthcare community; inaccuracies in the Company's estimates of the size of the potential markets for CM-101 or in data the Company has used to identify physicians; expected rates of patient uptake, duration of expected treatment, or expected patient adherence or discontinuation rates; development of unexpected safety or efficacy concerns related to CM-101; failure to successfully conduct future clinical trials for CM-101, including due to the Company's potential inability to enroll or retain sufficient patients to conduct and complete the trials or generate data necessary for regulatory approval, among other things; risks that the Company's clinical studies will be delayed or that serious side effects will be identified during drug development; failure of third parties on which the Company is dependent to manufacture sufficient quantities of CM-101 for commercial or clinical needs, to conduct the Company's clinical trials, or to comply with the Company's agreements or laws and regulations that impact the Company's business or agreements with the Company; the strength and enforceability of the Company’s intellectual property rights or the rights of third parties; the cost and potential reputational damage resulting from litigation to which the Company may become a party, including product liability claims; changes in laws and regulations applicable to the Company's business and failure to comply with such laws and regulations; business or economic disruptions due to catastrophes or other events, including natural disasters or public health crises; and inability to repay the Company's existing indebtedness and uncertainties with respect to the Company's need and ability to access future capital; and the intensity and duration of the current war in Israel, and its impact on our operations in Israel. These risks are not exhaustive. You should carefully consider the risks and uncertainties described in the “Risk Factors” sections of our 20-F for the year ended December 31, 2023. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities law of any such state or jurisdiction.

About Chemomab Therapeutics Ltd.
Chemomab is a clinical stage biotechnology company developing innovative therapeutics for fibro-inflammatory diseases with high unmet need. Based on the unique and pivotal role of CCL24 in promoting fibrosis and inflammation, Chemomab developed CM-101, a monoclonal antibody that neutralizes CCL24 activity. In clinical and preclinical studies, CM-101 has been shown to have a favorable safety profile and has been generally well-tolerated to date, with the potential to treat multiple severe and life-threatening fibro-inflammatory diseases. Chemomab has reported positive results from four clinical trials of CM-101, including a Phase 2 trial in patients with primary sclerosing cholangitis, a Phase 2a liver fibrosis trial in patients with metabolic-dysfunction-associated-steatohepatitis, a Phase 1b study in patients with metabolic dysfunction–associated fatty liver disease and an investigator-initiated study in patients with severe lung injury. Chemomab’s CM-101 program for the treatment of systemic sclerosis is Phase 2-ready with an open U.S. IND. For more information, visit www.chemomab.com.

Contact:

Media & Investors:
Chemomab Therapeutics
Barbara Lindheim
Consulting Vice President
Investor & Public Relations,
Strategic Communications
Phone: +1 917-355-9234
barbara.lindheim@chemomab.com
IR@chemomab.com

FAQ

What was the minimum bid price requirement that Chemomab Therapeutics (CMMB) had to meet for Nasdaq compliance?

Chemomab Therapeutics (CMMB) had to maintain a closing bid price of $1.00 or greater for its American Depositary Shares (ADSs) for at least 10 consecutive business days to regain compliance with Nasdaq's minimum bid price requirement.

When did Chemomab Therapeutics (CMMB) regain compliance with Nasdaq's minimum bid price requirement?

Chemomab Therapeutics (CMMB) regained compliance with Nasdaq's minimum bid price requirement on July 23, 2024, after maintaining a closing bid price of $1.00 or greater for its ADSs from July 9 to July 22, 2024.

What was the initial date when Chemomab Therapeutics (CMMB) was notified of non-compliance with Nasdaq's minimum bid price requirement?

Chemomab Therapeutics (CMMB) was initially notified of non-compliance with Nasdaq's minimum bid price requirement on November 6, 2023.

What is the main focus of Chemomab Therapeutics (CMMB) as a company?

Chemomab Therapeutics (CMMB) is a clinical-stage biotechnology company that develops innovative therapeutics for fibro-inflammatory diseases with high unmet need.