XORTX Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

XORTX Therapeutics Inc. announced it has received a notification from Nasdaq regarding non-compliance with the minimum bid price rule, as its shares traded below $1.00 for 30 consecutive business days. Despite this, the company's listing on Nasdaq remains unaffected at this time. XORTX has 180 days to regain compliance. The firm is focused on developing therapies for progressive kidney diseases and has advanced clinical programs including XRx-008 for ADPKD and XRx-101 for acute kidney injury related to COVID-19.

Positive

• XORTX has advanced clinical programs targeting kidney diseases.
• The company has a period of 180 days to regain compliance with Nasdaq listing requirements.

Negative

• The company's share price has fallen below the required $1.00 for Nasdaq compliance.
• Failure to comply with Nasdaq Rule 5550(a)(2) could lead to delisting if not resolved.

CALGARY, Alberta, Nov. 25, 2022 (GLOBE NEWSWIRE) -- XORTX Therapeutics Inc. ("XORTX" or the “Company”) (NASDAQ: XRTX | TSXV: XRTX | Frankfurt: ANU), a late-stage clinical pharmaceutical company focused on developing innovative therapies to treat progressive kidney disease, has received notification from the Nasdaq Stock Market LLC Listing Qualifications Department that it was not in compliance with the minimum bid price requirement set forth in Nasdaq Rule 5550(a)(2) since the closing bid price for the Company's common shares listed on Nasdaq was below US$1.00 for 30 consecutive business days. Nasdaq Rule 5550(a)(2) requires the shares to maintain a minimum bid price of US$1.00 per share, and Nasdaq Rule 5810(c)(3)(A) provides that failure to meet such a requirement exists when the bid price of the shares is below US$1.00 for a period of 30 consecutive business days.

These notifications do not impact the Company’s listing on the Nasdaq Capital Market at this time. In accordance with Listing Rule 5810(c)(3)(A), the Company has a period of 180 calendar days from the date of notification to regain compliance with the minimum bid price requirement, during which time the shares will continue to trade on the Nasdaq Capital Market. If at any time before the 180 calendar day period, the bid price of the shares closes at or above US$1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification that the Company has achieved compliance with the minimum bid price requirement and will consider such deficiency matters closed.

The Company is also listed on the TSX Venture Exchange and the notification letter does not affect the Company’s compliance status with such listing.

The Company intends to evaluate all available options to resolve the deficiency and regain compliance with Nasdaq Rule 5550(a)(2).

About XORTX Therapeutics Inc.

XORTX is a pharmaceutical company with two clinically advanced products in development: 1) our lead, XRx-008 program for ADPKD; and 2) our secondary program in XRx-101 for acute kidney and other acute organ injury associated with Coronavirus / COVID-19 infection. In addition, XRx-225 is a pre-clinical stage program for Type 2 Diabetic Nephropathy. XORTX is working to advance its clinical development stage products that target aberrant purine metabolism and xanthine oxidase to decrease or inhibit production of uric acid. At XORTX, we are dedicated to developing medications to improve the quality of life and future health of patients. Additional information on XORTX is available at www.xortx.com.

For more information, please contact:

Allen Davidoff, CEO		Nick Rigopulos, Director of Communications
adavidoff@xortx.com or +1 403 455 7727		nick@alpineequityadv.com or +1 617 901 0785
Media Inquiries, David Melamed, Ph.D.
david.melamed@russopartnersllc.com or +1 212 845 4225

Neither the TSX Venture Exchange nor Nasdaq has approved or disapproved the contents of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Forward Looking Statements

This press release contains express or implied forward-looking statements pursuant to U.S. Federal securities laws. These forward-looking statements and their implications are based on the current expectations of the management of XORTX 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. Except as otherwise required by law, XORTX 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 XORTX is contained under the heading “Risk Factors” in XORTX’s Registration Statement on Form F-1 filed with the SEC, which is available on the SEC's website, www.sec.gov (including any documents forming a part thereof or incorporated by reference therein), as well as in our reports, public disclosure documents and other filings with the securities commissions and other regulatory bodies in Canada, which are available on www.sedar.com.

FAQ

What does XORTX's Nasdaq notification mean for its stock?

The notification indicates that XORTX is currently not in compliance with Nasdaq's minimum bid price requirement of $1.00, but it has 180 days to regain compliance.

How long does XORTX have to fix its Nasdaq compliance issue?

XORTX has 180 calendar days from the date of notification to regain compliance with Nasdaq Rule 5550(a)(2).

What happens if XORTX does not comply with Nasdaq requirements?

If XORTX fails to comply within the 180-day period, it risks being delisted from Nasdaq.

Is XORTX still listed on the TSX Venture Exchange?

Yes, the notification from Nasdaq does not affect XORTX's compliance status with the TSX Venture Exchange.

What programs is XORTX developing?

XORTX is developing two advanced programs: XRx-008 for ADPKD and XRx-101 for acute kidney injury due to COVID-19.