Finch Announces Delisting from Nasdaq and SEC Deregistration
Finch Therapeutics Group (Nasdaq: FNCH) has announced its intention to delist its common stock from the Nasdaq Global Select Market. The company plans to file a Form 25 with the SEC and Nasdaq on or about October 31, 2024, with the delisting becoming effective 10 days later. Finch's common stock has been trading on the OTC Markets since its suspension from Nasdaq on May 28, 2024, due to Nasdaq's "public shell" determination.
The decision to delist and deregister was made by Finch's Board of Directors, considering factors such as reducing costs associated with SEC reporting and compliance with Sarbanes-Oxley Act requirements. Finch has previously received notices from Nasdaq regarding non-compliance with listing requirements, including being considered a "public shell," failing to maintain a minimum market value of publicly held shares, and lacking the required number of independent directors on its audit committee.
Finch Therapeutics Group (Nasdaq: FNCH) ha annunciato la sua intenzione di ritirare le proprie azioni ordinarie dal Nasdaq Global Select Market. L'azienda prevede di presentare un modulo 25 alla SEC e al Nasdaq intorno al 31 ottobre 2024, con il ritiro che diventerà effettivo 10 giorni dopo. Le azioni ordinarie di Finch sono state scambiate nei mercati OTC dalla loro sospensione dal Nasdaq il 28 maggio 2024, a causa della determinazione di Nasdaq di «public shell».
La decisione di ritirare e deregistrare è stata presa dal Consiglio di Amministrazione di Finch, considerando fattori come la riduzione dei costi associati alla reportistica della SEC e alla conformità con i requisiti del Sarbanes-Oxley Act. Finch ha precedentemente ricevuto avvisi da Nasdaq riguardo a mancanza di conformità ai requisiti di quotazione, tra cui essere considerata una «public shell», non mantenere un valore di mercato minimo delle azioni pubblicamente detenute e mancare del numero richiesto di amministratori indipendenti nel suo comitato di revisione.
Finch Therapeutics Group (Nasdaq: FNCH) ha anunciado su intención de retirar sus acciones comunes del Nasdaq Global Select Market. La compañía planea presentar un Formulario 25 ante la SEC y Nasdaq alrededor del 31 de octubre de 2024, con el deslistado que será efectivo 10 días después. Las acciones comunes de Finch han estado negociándose en los mercados OTC desde su suspensión de Nasdaq el 28 de mayo de 2024, debido a la determinación de Nasdaq de «public shell».
La decisión de deslistar y deregistrar fue tomada por la Junta Directiva de Finch, considerando factores como la reducción de costos asociados con los informes a la SEC y el cumplimiento de los requisitos de la Ley Sarbanes-Oxley. Finch ha recibido previamente avisos de Nasdaq sobre no cumplimiento de los requisitos de listado, incluyendo ser considerada una «public shell», no mantener un valor de mercado mínimo de acciones en circulación y carecer del número requerido de directores independientes en su comité de auditoría.
핀치 테라퓨틱스 그룹 (Nasdaq: FNCH)은 나스닥 글로벌 선택 시장에서 일반 주식을 상장 폐지할 계획을 발표했습니다. 이 회사는 2024년 10월 31일경 SEC 및 나스닥에 양식 25를 제출할 예정이며, 상장 폐지는 10일 후에 효력을 발생합니다. 핀치의 일반 주식은 나스닥에서 2024년 5월 28일에 일시 중지된 이후 OTC 시장에서 거래되고 있습니다. 이는 나스닥의 '공적 셸(public shell)' 판별 때문입니다.
상장 폐지 및 등록 취소 결정은 핀치의 이사회에 의해 이루어졌으며, SEC 보고 및 규정 준수와 관련된 비용 절감과 Sarbanes-Oxley 법 요구 사항을 고려했습니다. 핀치는 이전에 나스닥으로부터 상장 요건 미준수에 대한 통지를 받았으며, 여기에는 '공적 셸'로 간주되는 것, 공개적으로 보유한 주식의 최소 시장 가치를 유지하지 못한 것, 감시 위원회에 필요한 독립 이사를 보유하지 못한 것이 포함됩니다.
Finch Therapeutics Group (Nasdaq: FNCH) a annoncé son intention de retirer ses actions ordinaires du Nasdaq Global Select Market. L'entreprise prévoit de soumettre un formulaire 25 à la SEC et au Nasdaq aux alentours du 31 octobre 2024, le retrait devenant effectif 10 jours plus tard. Les actions ordinaires de Finch sont échangées sur les marchés OTC depuis leur suspension par le Nasdaq le 28 mai 2024, en raison de la détermination de Nasdaq concernant les « public shell ».
La décision de se retirer et de deregistrer a été prise par le Conseil d'Administration de Finch, en considérant des facteurs tels que la réduction des coûts associés aux rapports de la SEC et à la conformité avec les exigences de la Loi Sarbanes-Oxley. Finch avait précédemment reçu des avis de Nasdaq concernant le non-respect des exigences de cotation, y compris la qualification de « public shell », le non-maintien d'une valeur marchande minimale des actions détenues publiquement, ainsi que le manque du nombre requis de directeurs indépendants dans son comité d'audit.
Die Finch Therapeutics Group (Nasdaq: FNCH) hat ihre Absicht angekündigt, ihre Stammaktien vom Nasdaq Global Select Market abzuziehen. Das Unternehmen plant, am oder um den 31. Oktober 2024 ein Formular 25 bei der SEC und Nasdaq einzureichen, wobei das Delisting 10 Tage später wirksam wird. Die Stammaktien von Finch werden seit ihrer Aussetzung vom Nasdaq am 28. Mai 2024 aufgrund der Entscheidung von Nasdaq über «public shell» an den OTC-Märkten gehandelt.
Die Entscheidung zum Delisting und zur Deregistrierung wurde vom Vorstand von Finch getroffen, wobei Faktoren wie die Reduzierung der Kosten im Zusammenhang mit SEC-Berichterstattung und Compliance mit den Anforderungen des Sarbanes-Oxley Act berücksichtigt wurden. Finch hat zuvor Mitteilungen von Nasdaq bezüglich der Nichteinhaltung von Listing-Anforderungen erhalten, einschließlich der Einstufung als «public shell», dem Versäumnis, einen Mindestmarktwert für öffentlich gehaltene Aktien aufrechtzuerhalten, und dem Fehlen der erforderlichen Anzahl unabhängiger Direktoren in seinem Prüfungsausschuss.
- Potential reduction in costs associated with SEC reporting and compliance
- Continued trading on OTC Markets after delisting from Nasdaq
- Delisting from Nasdaq Global Select Market
- Loss of visibility and potential investor interest due to delisting
- Non-compliance with multiple Nasdaq listing requirements
- Uncertainty about maintaining trading on OTC Markets
- Potential reduction in liquidity for shareholders
Insights
This delisting announcement is a significant negative development for Finch Therapeutics. The company's decision to voluntarily delist from Nasdaq and deregister with the SEC indicates severe financial distress and operational challenges. Key points to consider:
- Delisting will likely result in reduced liquidity and potentially lower valuations for the stock
- Moving to OTC markets typically signals decreased investor interest and access to capital
- The company cites cost-saving as a primary motivation, suggesting financial constraints
- Multiple Nasdaq listing requirement violations, including being deemed a "public shell," point to fundamental business issues
- Loss of Nasdaq listing and SEC reporting status may limit transparency and investor protections
For investors, this move represents a major red flag. The company appears to be in survival mode, prioritizing cost-cutting over maintaining its status on a major exchange. While trading may continue OTC, the long-term viability of the business is now in serious question. Shareholders should carefully evaluate their positions given the increased risks and potential for further value erosion.
The delisting and SEC deregistration process Finch is undertaking carries significant legal and regulatory implications:
- By voluntarily delisting, the company avoids a forced delisting by Nasdaq, which could have more severe consequences
- Deregistration with the SEC will exempt Finch from many reporting requirements, reducing transparency but also compliance costs
- The move to OTC markets comes with less stringent regulatory oversight, potentially increasing risks for investors
- Multiple Nasdaq rule violations, including the "public shell" determination, suggest the company may no longer meet the criteria of an operating business
- The loss of an independent director raises governance concerns and could impact the company's ability to maintain proper internal controls
Investors should be aware that this transition may limit their legal protections and access to company information. The Board's decision, while potentially necessary for the company's survival, significantly alters the regulatory landscape surrounding Finch's securities.
BOSTON, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Finch Therapeutics Group, Inc. (Nasdaq: FNCH) (“Finch” or the “Company”), a microbiome technology company with a portfolio of intellectual property and microbiome assets, today announced that it has provided notification to The Nasdaq Stock Market, LLC (“Nasdaq”) of its intent to delist the Company’s common stock, par value
As previously disclosed, the Common Stock has been trading on a market operated by the OTC Markets Group Inc. (the “OTC”) since suspended from trading on Nasdaq on May 28, 2024 in light of Nasdaq's "public shell" determination. Following the delisting, the Company expects that the Common Stock will continue to be traded on a market operated by the OTC. No assurances can be provided, however, that trading of the Common Stock on the OTC will be maintained.
The withdrawal of the Common Stock from listing and registration is being undertaken following a determination by the Company’s Board of Directors (the “Board”) that such delisting and deregistration is in the best interest of the Company and the holders of its Common Stock.
The Board’s decision was based on careful review of numerous factors, including the potential for limiting the significant costs associated with preparing and filing periodic reports with the SEC and the legal, audit and other expenses associated with being a reporting company, as well as the substantial costs and demands on management’s time under the Sarbanes-Oxley Act of 2002, SEC rules and Nasdaq listing standards.
The Company has previously received notice from the Listing Qualifications Department of Nasdaq of certain failures to comply with Nasdaq’s requirements for continued listing, including a determination letter, dated February 16, 2024, informing the Company of Nasdaq’s belief that the Company is a “public shell” under the Nasdaq criteria and a deficiency letter, dated November 15, 2023, notifying the Company that, for the previous 35 consecutive business days, it did not meet the requirement to have a market value of publicly held shares of the Company’s Common Stock of at least
About Finch
Finch Therapeutics is a microbiome technology company with a portfolio of intellectual property and microbiome assets. Finch’s objectives are to realize the value of its intellectual property estate through licensing its technology to collaboration partners and enforcing its patent rights against infringing parties through intellectual property litigation and, in certain cases, to generate additional data on selected product candidates through academic collaborations.
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute forward-looking statements. The words “expect,” “intend,” “continue,” “potential,” “may,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements in this press release include, but are not limited to, statements concerning the Company’s plans with respect to the delisting and deregistration of its Common Stock; the perceived benefits and timing of the delisting and deregistration; the Company’s expectations regarding and its ability to realize the value of its intellectual property assets; and the trading of the Common Stock. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the risk that the delisting and deregistration process will take longer than expected and that the benefits of such actions may not be realized; the impact of changing laws and regulations and those risks and uncertainties described in the Company’s filings with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and its subsequent filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Readers should not rely upon this information as current or accurate after its publication date.
For investor inquiries, please contact:
IR@finchtherapeutics.com
For media inquiries, please contact:
info@finchtherapeutics.com
FAQ
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