Qualigen Therapeutics, Inc. Received Nasdaq Notice of a Delisting Determination
On May 23, 2024, Qualigen Therapeutics received a delisting notice from Nasdaq due to non-compliance with the minimum bid price requirement and failure to file Form 10-Q for the period ended March 31, 2024. Qualigen's stock has been trading below $1.00 for more than 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). Additionally, the company failed to meet the $2.5 million minimum stockholders’ equity requirement by the extended deadline of May 21, 2024. Qualigen has requested a hearing before a Nasdaq Hearings Panel to stay the suspension of trading and intends to submit a compliance plan. The company's stock will continue to trade under the symbol 'QLGN' during this process.
- Qualigen has requested a hearing before a Nasdaq Hearings Panel, which will stay the suspension of trading for 15 days.
- The company intends to submit a plan to regain compliance with Nasdaq listing requirements.
- Qualigen received a delisting notice for non-compliance with Nasdaq's minimum bid price requirement.
- The company's stock has traded below $1.00 for more than 30 consecutive days.
- Qualigen failed to file Form 10-Q for the period ended March 31, 2024.
- The company did not meet the $2.5 million minimum stockholders’ equity requirement by the deadline.
- There is no assurance that the Nasdaq Hearings Panel will grant an extended stay or that the company will achieve compliance.
Insights
Qualigen Therapeutics' recent delisting notice from Nasdaq is a critical development for investors. The delisting notice highlights the company's ongoing non-compliance with key Nasdaq listing rules, including the minimum bid price requirement, the failure to file Form 10-Q and the minimum stockholders' equity requirement.
From a financial perspective, the failure to maintain a bid price above
Additionally, the delay in filing the Form 10-Q raises concerns about internal controls and financial transparency. In the long run, if the company fails to regain compliance, it could face delisting, reducing its liquidity and making it less attractive to investors. The potential loss of Nasdaq listing could also limit Qualigen's ability to raise capital through equity markets, essential for its operational and strategic initiatives.
It is important for investors to monitor the outcome of the Nasdaq Hearings Panel's decision closely. The company's plan to regain compliance and its execution will be paramount in determining its financial health and market position.
The delisting notice for Qualigen Therapeutics presents significant legal challenges. Compliance with Nasdaq listing rules is vital for maintaining the company's market presence and investor trust. Failure to comply with the minimum bid price, equity requirements and delaying the Form 10-Q filing suggests potential governance and oversight issues within the company.
The company's decision to request a hearing before the Nasdaq Hearings Panel indicates its intent to rectify these issues. However, without assurance of compliance, the legal ramifications could be severe. Delisting would not only affect market liquidity but also could lead to further legal scrutiny and potential litigation from shareholders who might see their investment value eroded.
Investors should closely follow upcoming legal proceedings and the company’s compliance efforts. It's essential to understand the legal implications of continued non-compliance and potential delisting, which could significantly impact the company's operational and financial stability.
CARLSBAD, Calif., May 30, 2024 (GLOBE NEWSWIRE) -- Qualigen Therapeutics, Inc. (“Qualigen” or “the Company,” Nasdaq: QLGN), announced today that on May 23, 2024, it received written notice (the “Delist Notice”) from The Nasdaq Stock Market (“Nasdaq”) indicating the Company’s continued non-compliance with the minimum bid price requirement, pursuant to Listing Rule 5550(b)(2).
As previously reported, on November 20, 2023, the Company received a letter (the “Bid Price Deficiency Notice”) from Nasdaq notifying the Company that, because the closing bid price for its common stock has been below
Additionally, the Delist Notice states that since the Company has not yet filed its Form 10-Q for the period ended March 31, 2024, it no longer complies with Listing Rule 5250(c)(1), and that this matter serves as a separate and additional basis for delisting the Company’s securities from The Nasdaq Stock Market.
Further, as previously reported, on November 21, 2023, the Company also received a letter from Nasdaq notifying the Company that it did not comply with the
On May 30, 2024 the Company requested a hearing before a Nasdaq Hearings Panel, which will automatically stay the suspension of trading in the Company’s securities for a period of 15 days from the date of the request. The Company also intends to seek an extended stay pending the hearing, although no assurance can be provided that such an extension would be granted.
The Company is working to evidence compliance with all applicable requirements for continued listing on the Nasdaq Capital Market and intends to submit a plan to that effect to the Panel as part of the hearing process; however, there can be no assurance the Panel will grant any request for continued listing or that the Company will be able to regain compliance with the applicable listing criteria within the period of time that may be granted by the Panel.
The Notices have no immediate effect on the listing or trading of the Company’s common stock and the common stock will continue to trade on the Nasdaq Capital Market under the symbol “QLGN.”
About Qualigen Therapeutics, Inc.
For more information about Qualigen Therapeutics, Inc., please visit www.qlgntx.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company may in some cases use terms such as “predicts,” “believes,” “potential,” “continue,” “anticipates,” “estimates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “likely,” “will,” “should” or other words that convey uncertainty of the future events or outcomes to identify these forward-looking statements. The Company’s forward-looking statements are based on current beliefs and expectations of its management team that involve risks, potential changes in circumstances, assumptions, and uncertainties, including statements regarding the Company’s plans to regain compliance with the Nasdaq continued listing requirements, including the Minimum Bid Price Requirement and the Minimum Stockholders’ Equity Requirement or its alternatives, the Company’s ability to file its Form 10-Q for the period ended March 31, 2024 or otherwise in the future, and the Company’s financial condition, growth and strategies. Any or all of the forward-looking statements may turn out to be wrong or be affected by assumptions the Company makes that later turn out to be incorrect, or by known or unknown risks and uncertainties. These forward-looking statements are subject to risks and uncertainties including risks related to the Company’s ability to regain compliance with Nasdaq’s continued listing requirements, including the Minimum Bid Price Requirement and the Minimum Stockholders’ Equity Requirement or its alternatives, the Company’s ability to file its Form 10-Q for the period ended March 31, 2024 or otherwise in the future, or otherwise maintain compliance with any other listing requirement of The Nasdaq Capital Market, the potential de-listing of the Company’s shares from The Nasdaq Capital Market due to its failure to comply with the Minimum Bid Price Requirement or the Minimum Stockholders’ Equity Requirement or its alternatives, and the Company’s ability to file its Form 10-Q for the period ended March 31, 2024 or otherwise in the future, and the other risks set forth in the Company’s filings with the Securities and Exchange Commission, including in its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. For all these reasons, actual results and developments could be materially different from those expressed in or implied by the Company’s forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which are made only as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements beyond the date of this news release, except as required by law. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Contact:
Investor Relations
ir@qlgntx.com.
Source: Qualigen Therapeutics, Inc.
FAQ
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