Vaccinex Announces Receipt of Delisting Notification from Nasdaq

Rhea-AI Summary

Vaccinex (VCNX) received a delisting notification from Nasdaq on December 16, 2024, due to failure to maintain the required minimum of $2.5 million in stockholders' equity under Nasdaq Listing Rule 5550(b)(1). Trading of VCNX common stock will be suspended on Nasdaq effective December 18, 2024. Following the suspension, the company's shares are expected to be quoted on the OTC Markets Group under the same symbol 'VCNX'.

Positive

• None.

Negative

• Company failed to maintain minimum $2.5M stockholders' equity requirement
• Delisting from Nasdaq Capital Market
• Downgrade to OTC Markets trading, which typically implies reduced liquidity and institutional interest
• Potential negative impact on company's ability to raise capital

Insights

Financial Analyst

The delisting of Vaccinex from Nasdaq represents a significant negative development for the micro-cap biotech company. Failure to maintain the minimum $2.5 million stockholders' equity requirement indicates severe financial distress. The transition to OTC Markets typically results in reduced liquidity, decreased institutional investment interest and more challenging capital raising conditions. This move often leads to lower trading volumes and wider bid-ask spreads, making the stock less attractive to investors. For a clinical-stage biotech company that requires substantial capital for drug development, this delisting could significantly impair their ability to secure future funding and advance their neurodegenerative disease pipeline. The market cap of just $9.5 million further highlights the company's precarious financial position.

ROCHESTER, N.Y., Dec. 17, 2024 (GLOBE NEWSWIRE) -- Vaccinex, Inc. (Nasdaq: VCNX) (“Vaccinex” or the “Company”), a clinical-stage biotechnology company pioneering a differentiated approach to treating neurodegenerative disease by blocking astrogliosis and neuroinflammation through the inhibition of SEMA4D, today announced that on December 16, 2024, the Company received written notice (the “Notice”) from the Office of General Counsel of The Nasdaq Stock Market (“Nasdaq”) indicating that the Nasdaq Hearings Panel has determined to delist the Company’s shares from Nasdaq due to the Company’s failure to meet Nasdaq’s continued listing standards. As previously disclosed, the Company has not been compliant with the requirements under Nasdaq Listing Rule 5550(b)(1) to maintain a minimum of $2.5 million in stockholders’ equity for continued listing on the Nasdaq Capital Market. The Notice indicated that trading in the Company’s shares of common stock (the “Common Stock”) on Nasdaq will be suspended effective at the open of trading on Wednesday, December 18, 2024.

Upon suspension of the trading of its Common Stock on Nasdaq, the Company expects that its Common Stock will be quoted under its existing symbol “VCNX” on the OTC Markets Group.

About Vaccinex, Inc.

Vaccinex, Inc. is pioneering a differentiated approach to treating slowly progressive neurodegenerative diseases and cancer through the inhibition of semaphorin 4D (SEMA4D). The Company’s lead drug candidate, pepinemab, blocks SEMA4D, a potent biological effector that it believes triggers damaging inflammation in chronic diseases of the brain and prevents infiltration and activation of immune cells in tumors. Pepinemab was studied as a monotherapy in the Phase 1b/2 SIGNAL-AD study in Alzheimer’s Disease, and the Company has previously published promising Phase 2 data in Huntington’s disease. Vaccinex believes pepinemab could also be an important contributor to combination therapy in AD. In oncology, pepinemab is being evaluated in combination with KEYTRUDA^® in the Phase 1b/2 KEYNOTE-B84 study in recurrent or metastatic head and neck cancer (HNSCC) and in combination with BAVENCIO^® in a Phase 1b/2 study in patients with metastatic pancreatic adenocarcinoma (PDAC). The oncology clinical program also includes several investigator-sponsored studies in solid tumors including breast cancer and melanoma.

Vaccinex has global commercial and development rights to pepinemab and is the sponsor of the KEYNOTE-B84 study which is being performed in collaboration with Merck Sharp & Dohme Corp, a subsidiary of Merck and Co, Inc. Kenilworth, NJ, USA.

KEYTRUDA is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co. Inc., Kenilworth, NJ, USA. BAVENCIO^®/avelumab is provided by Merck KGaA, Darmstadt, Germany, previously as part of an alliance between the healthcare business of Merck KGaA, Darmstadt, Germany and Pfizer.

About Pepinemab

Pepinemab is a humanized IgG4 monoclonal antibody designed to block SEMA4D, which can bind to plexin-B1 receptors to trigger collapse of the actin cytoskeleton in cells and lead to loss of homeostatic functions of astrocytes and other glial cells in the brain and of dendritic cells in immune tissue. Pepinemab appears to have been well-tolerated with a favorable safety profile in multiple clinical trials in different neurological and cancer indications.

Forward Looking Statements

To the extent that statements contained in this press release are not descriptions of historical facts regarding Vaccinex, Inc. (“Vaccinex,” “we,” “us,” or “our”), they may be forward-looking statements reflecting management’s current beliefs and expectations. Such statements include, but are not limited to, statements identified by words such as “may,” “will,” “intends,” “plans,” and similar expressions or their negatives (as well as other words and expressions referencing future events, conditions, or circumstances). These statements include, among others, those regarding the expected timing of the quotation of the Company’s Common Stock on the OTC Markets Group. These statements are based on our current expectations and beliefs 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. Except as required by law, we assume no obligation to update these forward-looking statements. For a further discussion of these and other factors that could cause future results to differ materially from any forward-looking statement, see the section titled “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission (the “SEC”) and the other risks and uncertainties described in Vaccinex’s most recent year-end Annual Report on Form 10-K and subsequent SEC filings.

Investor Contact
Elizabeth Evans, PhD
Chief Operating Officer, Vaccinex, Inc.
(585) 766-2033
eevans@vaccinex.com

FAQ

Why is Vaccinex (VCNX) being delisted from Nasdaq?

Vaccinex is being delisted from Nasdaq due to failing to maintain the minimum requirement of $2.5 million in stockholders' equity as per Nasdaq Listing Rule 5550(b)(1).

When will VCNX stock be suspended from trading on Nasdaq?

VCNX stock will be suspended from trading on Nasdaq effective at the open of trading on Wednesday, December 18, 2024.

Where will VCNX stock trade after Nasdaq delisting?

After Nasdaq delisting, VCNX stock is expected to be quoted on the OTC Markets Group under the same symbol 'VCNX'.

What is the minimum stockholders' equity requirement that VCNX failed to meet?

VCNX failed to meet Nasdaq's requirement of maintaining a minimum of $2.5 million in stockholders' equity for continued listing on the Nasdaq Capital Market.