I-Mab Announces Receipt Of Nasdaq Deficiency Notice Regarding Minimum Bid Price Requirement

Rhea-AI Summary

I-Mab (NASDAQ: IMAB) has received a deficiency notice from Nasdaq on March 19, 2025, for failing to meet the minimum bid price requirement of $1.00. The notice comes after the company's stock traded below this threshold from February 3 to March 18, 2025.

The company has been granted a 180-day compliance period until September 15, 2025, during which it must achieve a closing bid price of at least $1.00 for ten consecutive business days to maintain its Nasdaq Global Market listing. If unsuccessful, I-Mab may be eligible for an additional 180-day extension or face potential delisting.

While the notice does not immediately affect I-Mab's listing status, business operations, or SEC reporting requirements, the company is evaluating options to regain compliance and has expressed its intention to resolve the deficiency within the given timeframe.

Positive

• 180-day compliance period granted until September 15, 2025
• Possibility of additional 180-day extension if initial compliance period fails
• Business operations and SEC reporting requirements remain unaffected

Negative

• Stock trading below $1.00 minimum requirement, risking potential Nasdaq delisting
• Company faces significant share price recovery challenge to maintain listing
• No concrete plan announced to address the price deficiency

Insights

Financial Regulatory Analyst

I-Mab's receipt of a Nasdaq deficiency notice represents a meaningful regulatory challenge that investors should monitor closely. The company's $0.8506 share price has fallen below Nasdaq's $1.00 minimum bid requirement for a sustained period, triggering this compliance issue.

The 180-day compliance window until September 15th provides I-Mab with several potential remedies. Most commonly, companies in this position implement reverse stock splits to artificially boost share price without changing fundamental value. For instance, a 2-for-1 reverse split would theoretically double the share price to approximately $1.70.

However, I find the company's cautionary language particularly noteworthy. Their statement that "there can be no assurance that the Company will be able to regain compliance" suggests potential concerns about implementing effective solutions. With a micro-cap valuation of just $71 million, I-Mab operates from a position of financial flexibility.

For shareholders, delisting risk creates several negative implications: reduced liquidity, decreased institutional ownership potential as many funds cannot hold OTC securities, diminished analyst coverage, and greater challenges accessing capital markets. While the immediate trading status remains unchanged, this notice significantly increases regulatory uncertainty and represents a negative development for current investors.

ROCKVILLE, Md., March 21, 2025 (GLOBE NEWSWIRE) -- I-Mab (NASDAQ: IMAB) (“I-Mab” or the “Company”), announced today that on March 19, 2025 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 $1.00 minimum bid price requirement under the Nasdaq Listing Rules (the “Listing Rules”). Based on the closing bid price of the Company’s listed securities for the period from February 3, 2025 to March 18, 2025, the Company has not met the minimum bid price requirement set forth in Listing Rule 5450(a)(1) during that period. The Notice is only a notification of deficiency and has no immediate effect on the listing of the Company’s American Depositary Shares (“ADS”). The Company’s ADSs will continue to trade on the Nasdaq Global Market at this time. The Company’s receipt of the Notice does not impact the Company’s business, operations or reporting requirements with the U.S. Securities and Exchange Commission.

The Notice states that under Listing Rule 5810(c)(3)(A) the Company is provided with a period of 180 calendar days, or until September 15, 2025, 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 $1.00 per ADS for at least ten consecutive business days, unless Nasdaq exercises its discretion to extend this ten-day period. In the event the Company does not regain compliance by September 15, 2025, the Company may be eligible for an additional 180 calendar day period to regain compliance or may face delisting.

The Company intends to continue to monitor the closing bid price of its ADSs between now and September 15, 2025. The Company is currently evaluating options to regain compliance and intends to timely regain compliance with Nasdaq’s continued listing requirement. Although the Company will use all reasonable efforts to achieve compliance with the Minimum Bid Requirement, there can be no assurance that the Company will be able to regain compliance with that rule or will otherwise be in compliance with other Nasdaq continued listing requirements. If it appears that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that the Company’s securities will be subject to delisting.

The Company fully intends to resolve the deficiency and regain compliance with the Listing Rules.

About I-Mab

I-Mab (NASDAQ: IMAB) is a US-based, global biotech company, focused on the development of precision immuno-oncology agents for the treatment of cancer. I-Mab has established operations in Rockville, Maryland, and Short Hills, New Jersey. For more information, please visit https://www.i-mabbiopharma.com and follow us on LinkedIn and X.

I-Mab Forward Looking Statements

This release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “believes”, “designed to”, “anticipates”, “future”, “intends”, “plans”, “potential”, “estimates”, “confident”, and similar terms or the negative thereof. I-Mab may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about I-Mab’s beliefs and expectations, are forward-looking statements. Forward-looking statements in this press release include, without limitation, statements regarding the Company’s intention to resolve the deficiency and regain compliance with the Nasdaq Listing Rules. Forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from those contained in these forward-looking statements, including but not limited to the following: I-Mab’s ability to demonstrate the safety and efficacy of its drug candidates; the clinical results for its drug candidates, which may or may not support further development or New Drug Application/Biologics License Application (NDA/BLA) approval; the content and timing of decisions made by the relevant regulatory authorities regarding regulatory approval of I-Mab’s drug candidates; I-Mab’s ability to achieve commercial success for its drug candidates, if approved; I-Mab’s ability to obtain and maintain protection of intellectual property for its technology and drugs; I-Mab’s reliance on third parties to conduct drug development, manufacturing and other services; and I-Mab’s limited operating history and I-Mab’s ability to obtain additional funding for operations and to complete the development and commercialization of its drug candidates, as well as those risks more fully discussed in the “Risk Factors” section in I-Mab’s most recent annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in I-Mab’s subsequent filings with the SEC. All forward-looking statements are based on information currently available to I-Mab. I-Mab undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law.

I-Mab Investor & Media Contacts
PJ Kelleher
LifeSci Advisors
+1-617-430-7579
pkelleher@lifesciadvisors.com
IR@imabbio.com

FAQ

What is the deadline for I-Mab (IMAB) to regain Nasdaq compliance?

I-Mab has until September 15, 2025 to regain compliance by maintaining a closing bid price above $1.00 for at least 10 consecutive business days.

What happens if IMAB stock doesn't meet Nasdaq's minimum bid requirement by the deadline?

If IMAB fails to comply by September 15, 2025, it may receive an additional 180-day extension or face delisting from the Nasdaq Global Market.

How long has IMAB stock been trading below the Nasdaq minimum requirement?

IMAB stock traded below the $1.00 minimum requirement from February 3, 2025 to March 18, 2025.

Does the Nasdaq deficiency notice affect IMAB's current trading status?

No, the notice has no immediate effect on IMAB's listing or trading status on the Nasdaq Global Market.

What must IMAB's stock price reach to regain Nasdaq compliance?

IMAB's closing bid price must meet or exceed $1.00 per ADS for at least ten consecutive business days.