NLS Pharmaceutics Announces Receipt of Staff Delisting Determination from Nasdaq; Intends to Request Hearing

Rhea-AI Summary

NLS Pharmaceutics received a delisting determination from Nasdaq due to failing to maintain a $1 bid price per share. The company plans to request a hearing to present a compliance plan and seek an extension to meet listing requirements. However, there is no guarantee of approval or regaining compliance.

Insights

Financial Analyst

The announcement from NLS Pharmaceutics regarding the potential delisting from Nasdaq due to non-compliance with the minimum bid price requirement is a concern for shareholders. If delisted, the liquidity and marketability of NLS stocks would be adversely affected, as over-the-counter markets are generally less liquid and companies may not garner the same investor attention. The bid price requirement ensures a modicum of investor confidence and corporate stability. The plan to regain compliance will likely involve measures to boost the stock price, such as reverse stock splits or operational improvements. However, investors should consider the inherent risks in such situations, including the possible perception that the company is underperforming. While this does not directly impact the company's operation, the stigma associated with delisting can affect investor sentiment and the company's ability to raise capital.

Medical Research Analyst

Investors should take into account the company's pipeline and current operational standing. A biopharmaceutical focusing on rare and complex CNS disorders could have significant upside potential if its therapies prove successful. However, research and development in this field are highly capital-intensive with a long road to commercialization, often fraught with regulatory hurdles. The risk of delisting could compound NLS's challenges by potentially reducing funding opportunities. Limited capital would hinder its ability to advance clinical trials or invest in new research, which could delay drug development and ultimately impact the company's growth prospects. For retail investors, it's important to balance the company's scientific promise against these financial and market-based risks.

ZÜRICH, SWITZERLAND / ACCESSWIRE / April 19, 2024 / NLS Pharmaceutics Ltd. (NASDAQ:NLSP)(NASDAQ:NLSPW) ("NLS" or the "Company"), a Swiss clinical-stage biopharmaceutical company focused on the discovery and development of innovative therapies for patients with rare and complex central nervous system disorders, announces that on April 17, 2024, it received a determination letter (the "Letter") from the staff (the "Staff") of the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company of the Staff's determination that, unless the Company timely requests a hearing before a Nasdaq Hearings Panel (the "Panel"), the Company's securities would be subject to delisting from The Nasdaq Capital Market due to the Company's failure to maintain at least a $1 bid price per share over the course of 30 consecutive business days, as set forth in Nasdaq Listing Rule 5550(a)(2). Accordingly, the Company intends to timely request a hearing before the Panel. The hearing request will stay any suspension or delisting action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing.

At the hearing, the Company intends to present a plan to achieve compliance with the bid price requirement, as well as any other applicable Nasdaq listing requirements, and to request that the Panel allow the Company additional time to regain such compliance. However, there can be no assurance that the Panel will grant the Company's request for an extension or that the Company will ultimately regain compliance with all applicable requirements for continued listing.

About NLS Pharmaceutics Ltd.

NLS Pharmaceutics Ltd. is a Swiss clinical-stage biopharmaceutical company led by an experienced management team with a track record of developing and repurposing product candidates to treat rare and complex central nervous system disorders. The Company's lead product candidate, Quilience®, is a proprietary extended-release formulation of Mazindol (Mazindol ER) and is being developed for the treatment of narcolepsy, and potentially other sleep-wake disorders such as idiopathic hypersomnia (IH), for which NLS recently obtained Orphan Disease Designation (ODD) from the European Medicines Agency (EMA). Mazindol is a triple monoamine reuptake inhibitor and partial Orexin-2 Receptor agonist, which was used for many years to treat patients diagnosed with narcolepsy in compassionate use programs. A Phase 2a multi-center U.S. clinical trial evaluating Quilience^® in adult subjects suffering from narcolepsy met its primary endpoint with high statistical significance and demonstrated a favorable safety and tolerability profile. NLS also successfully completed a Phase 2 study in the U.S. evaluating Nolazol^® (Mazindol Controlled-Release) in adult subjects suffering from ADHD. The study met all primary and secondary endpoints and Nolazol^® was well-tolerated. Quilience^® has received Orphan Drug Designations both in the U.S. and in Europe for the treatment of narcolepsy. Up to 1/3 of narcoleptic patients are also diagnosed with ADHD.

Safe Harbor Statement

This press release contains expressed or implied forward-looking statements pursuant to U.S. Federal securities laws. For example, NLS is using forward-looking statements when it discusses its intention to appeal the delisting determination. These forward-looking statements and their implications are based on the current expectations of the management of NLS only and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; NLS may encounter delays or obstacles in launching and/or successfully completing its clinical trials; NLS' products may not be approved by regulatory agencies, NLS' technology may not be validated as it progresses further and its methods may not be accepted by the scientific community; NLS may be unable to retain or attract key employees whose knowledge is essential to the development of its products; unforeseen scientific difficulties may develop with NLS' process; NLS' products may wind up being more expensive than it anticipates; results in the laboratory may not translate to equally good results in real clinical settings; results of preclinical studies may not correlate with the results of human clinical trials; NLS' patents may not be sufficient; NLS' products may harm recipients; changes in legislation may adversely impact NLS; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of NLS to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, NLS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting NLS is contained under the heading "Risk Factors" in NLS' annual report on Form 20-F for the year ended December 31, 2022 filed with the SEC, which is available on the SEC's website, www.sec.gov, and in subsequent filings made by NLS with the SEC.

Investor Relations Contact
InvestorRelations@nls-pharma.com
www.nlspharmaceutics.com

SOURCE: NLS Pharmaceutics AG

View the original press release on accesswire.com

FAQ

Why did NLS Pharmaceutics receive a delisting determination from Nasdaq?

NLS Pharmaceutics received a delisting determination from Nasdaq due to its failure to maintain at least a $1 bid price per share over 30 consecutive business days as per Nasdaq Listing Rule 5550(a)(2).

What action does NLS Pharmaceutics plan to take in response to the delisting determination?

NLS Pharmaceutics intends to request a hearing before a Nasdaq Hearings Panel to present a plan to achieve compliance with the bid price requirement and seek an extension to meet all applicable Nasdaq listing requirements.

Is there a guarantee that NLS Pharmaceutics will regain compliance and avoid delisting?

There is no assurance that the Nasdaq Hearings Panel will grant NLS Pharmaceutics' request for an extension or that the company will ultimately regain compliance with all applicable requirements for continued listing.