Polyrizon Announces Receipt of Nasdaq Delisting Notice
Polyrizon Ltd. (PLRZ) has received a delisting notification from Nasdaq's Listing Qualifications Department due to concerns over a recent securities issuance. The notification stems from the company's March 31, 2025 securities purchase agreement, specifically regarding Series A warrants with alternate cashless exercise provisions that Nasdaq determined could cause substantial shareholder dilution.
While the notice doesn't result in immediate delisting of PLRZ shares from the Nasdaq Capital Market, the company must request a hearing before a Hearings Panel to maintain its listing. Polyrizon has confirmed its intention to request this hearing, which will automatically stay any suspension or delisting actions pending the hearing's outcome and any additional extension period granted by the Panel.
Polyrizon Ltd. (PLRZ) ha ricevuto una notifica di delisting dal Dipartimento di Qualificazione delle Quotazioni del Nasdaq a causa di preoccupazioni legate a una recente emissione di titoli. La notifica deriva dall'accordo di acquisto di titoli della società del 31 marzo 2025, in particolare riguardo ai warrant Serie A con disposizioni alternative di esercizio senza contanti che il Nasdaq ha ritenuto potessero causare una sostanziale diluizione degli azionisti.
Pur non comportando la rimozione immediata delle azioni PLRZ dal Nasdaq Capital Market, la società deve richiedere un'udienza davanti a un Hearings Panel per mantenere la quotazione. Polyrizon ha confermato la sua intenzione di richiedere questa udienza, che sospenderà automaticamente qualsiasi azione di sospensione o delisting in attesa dell'esito dell'udienza e di eventuali periodi di proroga concessi dal Panel.
Polyrizon Ltd. (PLRZ) ha recibido una notificación de exclusión por parte del Departamento de Calificaciones de Listado de Nasdaq debido a preocupaciones sobre una emisión reciente de valores. La notificación se basa en el acuerdo de compra de valores de la compañía del 31 de marzo de 2025, específicamente en relación con los warrants Serie A con disposiciones alternativas de ejercicio sin efectivo que Nasdaq determinó podrían causar una dilución sustancial para los accionistas.
Aunque la notificación no implica una exclusión inmediata de las acciones de PLRZ del Nasdaq Capital Market, la empresa debe solicitar una audiencia ante un Panel de Audiencias para mantener su cotización. Polyrizon ha confirmado su intención de solicitar esta audiencia, que automáticamente suspenderá cualquier acción de suspensión o exclusión pendiente del resultado de la audiencia y de cualquier período adicional de extensión concedido por el Panel.
폴리리존 Ltd. (PLRZ)는 최근 증권 발행과 관련된 우려로 인해 나스닥 상장 자격 부서로부터 상장폐지 통보를 받았습니다. 이 통보는 2025년 3월 31일 회사의 증권 매매 계약에 근거한 것으로, 특히 대체 무현금 행사 조항이 포함된 시리즈 A 워런트와 관련하여 나스닥이 주주 지분의 상당한 희석을 초래할 수 있다고 판단한 사항입니다.
이 통보는 PLRZ 주식이 나스닥 캐피털 마켓에서 즉시 상장폐지되는 것을 의미하지 않으며, 회사는 상장을 유지하기 위해 청문회 패널 앞에서 청문회를 요청해야 합니다. 폴리리존은 이 청문회 요청 의사를 확인했으며, 이는 청문회 결과와 패널이 부여하는 추가 연장 기간 동안 모든 정지 또는 상장폐지 조치를 자동으로 유예합니다.
Polyrizon Ltd. (PLRZ) a reçu une notification de radiation du Département des Qualifications de Cotation du Nasdaq en raison de préoccupations liées à une récente émission de titres. La notification provient de l'accord d'achat de titres de la société en date du 31 mars 2025, concernant spécifiquement les bons de souscription Série A avec des dispositions alternatives d'exercice sans numéraire que le Nasdaq a jugées susceptibles de provoquer une dilution substantielle des actionnaires.
Bien que cet avis n'entraîne pas la radiation immédiate des actions PLRZ du Nasdaq Capital Market, la société doit demander une audience devant un panel d'audition pour maintenir sa cotation. Polyrizon a confirmé son intention de solliciter cette audience, ce qui suspendra automatiquement toute suspension ou radiation en attente du résultat de l'audience et de toute période de prolongation supplémentaire accordée par le panel.
Polyrizon Ltd. (PLRZ) hat vom Listing Qualifications Department der Nasdaq eine Delisting-Mitteilung erhalten, aufgrund von Bedenken bezüglich einer kürzlichen Wertpapieremission. Die Mitteilung bezieht sich auf den Wertpapierkaufvertrag der Gesellschaft vom 31. März 2025, insbesondere auf Series A Warrants mit alternativen barlosen Ausübungsbestimmungen, die Nasdaq als potenzielle Ursache für eine erhebliche Verwässerung der Aktionäre eingestuft hat.
Obwohl die Mitteilung nicht zu einer sofortigen Delistung der PLRZ-Aktien vom Nasdaq Capital Market führt, muss das Unternehmen eine Anhörung vor einem Hearings Panel beantragen, um die Notierung aufrechtzuerhalten. Polyrizon hat seine Absicht bestätigt, diese Anhörung zu beantragen, welche automatisch jegliche Aussetzungs- oder Delisting-Maßnahmen bis zum Ergebnis der Anhörung und einer möglichen Verlängerung durch das Panel aussetzt.
- None.
- Received delisting notice from Nasdaq due to public interest concerns
- Securities issuance could result in substantial shareholder dilution
- Company's listing status on Nasdaq is at risk
Insights
Polyrizon faces Nasdaq delisting due to substantial shareholder dilution from recent warrant issuance, threatening its market status.
Polyrizon has received a significant delisting notification from Nasdaq, which represents a serious regulatory challenge for the company. The exchange is exercising its discretionary authority under Listing Rule 5101 due to concerns about the company's March 31, 2025 securities issuance. The core issue involves Series A warrants with an alternate cashless exercise provision that Nasdaq has determined resulted in substantial dilution for existing shareholders.
This regulatory action reflects Nasdaq's increasing scrutiny of transactions that potentially harm shareholder value through excessive dilution. While immediate delisting isn't occurring, this puts Polyrizon in a precarious position. The company is utilizing the standard procedural response by requesting a hearing before the Nasdaq Hearings Panel, which temporarily stays any suspension action.
For biotech companies like Polyrizon in development stages, maintaining exchange listing is crucial for capital access. The delisting notice suggests the warrant structure may have been overly aggressive in its dilutive effects, likely creating a situation where existing shareholders' ownership was significantly diminished. These types of alternate cashless exercise provisions often allow warrant holders to receive shares without providing proportional capital to the company, creating a scenario where value is transferred from existing shareholders to warrant holders.
The hearing process typically extends 30-45 days, providing temporary relief, but Polyrizon now faces the burden of convincing the Panel that its continued listing serves the public interest despite the dilutive transaction. Without compelling arguments, the company faces potential delisting, which would force its shares to less liquid markets like OTC and severely impact investor confidence.
Raanana, Israel, May 23, 2025 (GLOBE NEWSWIRE) -- Polyrizon Ltd. (Nasdaq: PLRZ) (the “Company” or “Polyrizon”), a development stage biotech company specializing in the development of innovative intranasal hydrogels, announced that it has received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”), stating that based on its review of the Company’s public filings with the Securities and Exchange Commission (the “SEC”), its staff has determined to delist the Company’s securities pursuant to its discretionary authority under Listing Rule 5101. The receipt of the Nasdaq 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 the Nasdaq Capital Market, under symbol “PLRZ.”
Specifically, as set forth in the letter, Nasdaq’s staff determined that the Company’s issuance of securities pursuant to the securities purchase agreement dated March 31, 2025, particularly the Series A warrants exercisable on an alternate cashless basis as described in the Company’s prior SEC filings, raises public interest concerns because the issuance resulted in substantial dilution for its shareholders.
Accordingly, and as described in the notification letter, unless the Company timely requests a hearing before a Hearings Panel (the “Panel”), the Company’s securities would be subject to suspension/delisting. Accordingly, the Company intends to timely request a hearing before the Panel. The hearing request will automatically stay any suspension or delisting action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing.
About Polyrizon
Polyrizon is a development stage biotech company specializing in the development of innovative medical device hydrogels delivered in the form of nasal sprays, which form a thin hydrogel-based shield containment barrier in the nasal cavity that can provide a barrier against viruses and allergens from contacting the nasal epithelial tissue. Polyrizon’s proprietary Capture and Contain TM, or C&C, hydrogel technology, comprised of a mixture of naturally occurring building blocks, is delivered in the form of nasal sprays, and potentially functions as a “biological mask” with a thin shield containment barrier in the nasal cavity. Polyrizon are further developing certain aspects of our C&C hydrogel technology such as the bioadhesion and prolonged retention at the nasal deposition site for intranasal delivery of drugs. Polyrizon refers to its additional technology, which is in an earlier stage of pre-clinical development, that is focused on nasal delivery of active pharmaceutical ingredients, or APIs, as Trap and Target ™, or T&T. For more information, please visit https://polyrizon-biotech.com.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the Company’s ability to continue to remain listed on Nasdaq and the Company’s ability to successfully appeal the Nasdaq staff’s delisting determination. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report filed with the SEC on March 11, 2025 and subsequent filings with the SEC.. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Polyrizon is not responsible for the contents of third-party websites.
Contacts:
Michal Efraty
Investor Relations
IR@polyrizon-biotech.com
FAQ
Why did Polyrizon (PLRZ) receive a Nasdaq delisting notice?
Will Polyrizon (PLRZ) be immediately delisted from Nasdaq?
What triggered the Nasdaq delisting notice for PLRZ stock?
What options does Polyrizon have to maintain its Nasdaq listing?
