Renalytix Submits Hearing Request to Nasdaq Hearings Panel in Regard to Staff Delisting Determination

Rhea-AI Summary

Renalytix has submitted a hearing request to the Nasdaq Hearings Panel to address a staff delisting determination. This action temporarily halts the suspension of Renalytix's American Depositary Shares (ADSs) on the Nasdaq Global Market under the symbol 'RNLX'. The company plans to present a strategy to regain compliance with Nasdaq's listing requirements, but there is no guarantee the plan will be accepted or that compliance will be restored.

The delisting risk arises from Renalytix's failure to meet Nasdaq's minimum closing bid price and market value of listed securities requirements. Delisting could severely impact the ease of trading Renalytix's ADSs, their market price, and the company's ability to raise capital. The Panel may grant an extension of up to 180 days from the delisting notice date to resolve these issues.

Positive

• Renalytix's hearing request has temporarily stayed the delisting of its ADSs from Nasdaq.
• The Panel has the authority to grant an extension of up to 180 days for Renalytix to regain compliance.

Negative

• Renalytix is currently out of compliance with Nasdaq's minimum closing bid price requirement.
• Renalytix has failed to maintain a minimum market value of listed securities of $50,000,000.
• If delisted, it may become more challenging to trade Renalytix's ADSs and their market price could decline.
• Delisting could impair Renalytix's ability to raise capital.

Throughout the hearings process and pending the Panel’s decision, the Company’s ADSs will continue trading on The Nasdaq Global Market under the symbol “RNLX”

LONDON and NEW YORK, June 27, 2024 (GLOBE NEWSWIRE) -- Renalytix plc (Nasdaq: RNLX) (LSE: RENX) announces that it has formally submitted a hearing request to the Nasdaq Hearings Panel (the “Panel”), which request has now stayed the suspension of the Company's securities pending the Panel's decision as described below. Throughout the hearings process, pending the Panel’s decision, the Company’s American Depositary Shares (“ADSs”) will continue trading on The Nasdaq Global Market under the symbol “RNLX.”

At the Panel hearing, the Company intends to present a strategic plan to regain compliance with the applicable Nasdaq listing requirements. However, there can be no assurance that the Company's plan will be accepted by the Panel or that, if it is, the Company will be able to regain compliance with the applicable Nasdaq listing requirements. If the Company's ADSs are delisted, it could be more difficult to buy or sell the Company's ADSs or to obtain accurate quotations, and the price of the Company's ADSs could suffer a material decline. Delisting could also impair the Company's ability to raise capital.

As previously disclosed, on June 25, 2024, the Company received written notice on June 21, 2024, from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it has been out of compliance with Nasdaq’s minimum closing bid price requirement, as set forth in Nasdaq Listing Rule 5450(a)(1), for the Company’s ADSs and the requirement to maintain a minimum market value of listed securities of $50,000,000 for continued listing on The Nasdaq Global Market, as set forth in Nasdaq Listing Rule 5450(b)(2)(A). Accordingly, the Company has submitted the Nasdaq hearing request, which has automatically stayed any suspension or delisting action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing. In that regard, pursuant to the Nasdaq Listing Rules, the Panel has the authority to grant an extension not to exceed 180 days from the date of the Nasdaq delisting notice.

For further information, please contact:

Renalytix plc	www.renalytix.com
James McCullough, CEO	Via Walbrook PR
Stifel (Nominated Adviser, Joint Broker)	Tel: 020 7710 7600
Alex Price / Nicholas Moore / Nick Harland / Samira Essebiyea
Investec Bank plc (Joint Broker)	Tel: 020 7597 4000
Gary Clarence / Shalin Bhamra
Walbrook PR Limited Paul McManus / Alice Woodings / Charlotte Edgar	Tel: 020 7933 8780 or renalytix@walbrookpr.com Mob: 07980 541 893 / 07407 804 654 / 07884 664 686
CapComm Partners
Peter DeNardo	Tel: 415-389-6400 or investors@renalytix.com

About Renalytix
Renalytix (NASDAQ: RNLX) (LSE: RENX) is an artificial intelligence enabled in-vitro diagnostics and laboratory services company that is the global founder and leader in the field of bioprognosis™ for kidney health. In late 2023, our kidneyintelX.dkd test was recognized as the first and only FDA-authorized prognostic test to enable early-stage CKD (stages 1-3b) risk assessment for progressive decline in kidney function in T2D patients. By understanding how disease will progress, patients and clinicians can take action earlier to improve outcomes and reduce overall health system costs. For more information, visit www.renalytix.com.

Forward-Looking Statements
Certain statements contained in this Current Report on Form 8-K are not historical facts and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. This information includes, without limitation, statements concerning the Company's intention or ability to regain compliance with the applicable Nasdaq listing requirements, the Company's intention to appeal the Nasdaq staff's determination, the Company's expectation that a request for a Panel hearing will stay the suspension of the Company's securities pending the Panel's decision, the timing and nature of any hearing before the Panel, the outcome of the Panel's review of any Company appeal of the Nasdaq staff's determination, and any courses of action to regain compliance with the applicable Nasdaq listing requirements. Words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," and similar expressions are intended to identify forward-looking statements. The Company may not actually achieve the plans and objectives disclosed in the forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. Any forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. These and other risks are described more fully in the Company's filings with the Securities and Exchange Commission (SEC), including the "Risk Factors" section of its annual report on Form 10-K filed with the SEC on September 28, 2023, and any risks that may be contained in any subsequent filings that the Company makes with the SEC. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

FAQ

What action has Renalytix taken regarding the Nasdaq delisting notice?

Renalytix has submitted a hearing request to the Nasdaq Hearings Panel, temporarily staying the delisting of its ADSs.

Why is Renalytix facing a delisting threat from Nasdaq?

Renalytix is out of compliance with Nasdaq's minimum closing bid price requirement and the minimum market value of listed securities requirement.

Will Renalytix's ADSs continue to trade on Nasdaq?

Yes, Renalytix's ADSs will continue trading on the Nasdaq Global Market under the symbol 'RNLX' pending the Panel's decision.

What happens if Renalytix's ADSs are delisted from Nasdaq?

If delisted, trading Renalytix's ADSs could become more difficult, their market price may decline, and the company's ability to raise capital could be impaired.

How long can Renalytix remain listed on Nasdaq during the hearing process?

The Nasdaq Hearings Panel can grant an extension of up to 180 days from the date of the delisting notice for Renalytix to regain compliance.