XORTX Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

XORTX Therapeutics (NASDAQ: XRTX) has received notification from Nasdaq that it is not complying with the minimum bid price requirement, as its shares traded below US$1.00 for 30 consecutive business days. The company has been granted 180 calendar days to regain compliance with Nasdaq Rule 5550(a)(2).

To resolve this deficiency, XORTX must maintain a closing bid price of US$1.00 or higher for a minimum of 10 consecutive business days. The notification does not immediately affect XORTX's listing on the Nasdaq Capital Market or its status on the TSX Venture Exchange. The company is currently evaluating options to address this compliance issue.

Positive

• 180-day grace period granted to regain compliance
• Company maintains listing on TSX Venture Exchange unaffected by Nasdaq notification

Negative

• Stock trading below US$1.00 for 30 consecutive business days
• Risk of potential Nasdaq delisting if compliance is not achieved within 180 days
• Company needs to address minimum bid price deficiency to maintain Nasdaq listing

Insights

Financial Regulatory Expert

Nasdaq minimum bid price deficiency warning threatens XORTX's exchange listing, potentially impacting liquidity and capital access for the clinical-stage biotech.

XORTX Therapeutics has received a minimum bid price deficiency notification from Nasdaq, triggering a compliance challenge that could significantly impact the company's market standing. With its share price trading below $1.00 for 30 consecutive business days, XORTX has violated Nasdaq Rule 5550(a)(2), though immediate delisting isn't imminent.

The company now enters a 180-day compliance period during which it must regain compliance by having its shares close at or above $1.00 for at least 10 consecutive business days. For micro-cap pharmaceutical companies like XORTX (market cap: $3.52 million), such notifications often force difficult strategic decisions.

The most common remedy is implementing a reverse stock split (share consolidation), which artificially raises the share price without changing fundamental value. However, reverse splits sometimes carry negative investor perception and may not address underlying valuation concerns.

While XORTX maintains its TSX Venture Exchange listing regardless of the Nasdaq outcome, potential delisting from Nasdaq would substantially reduce trading liquidity, institutional investor access, and future capital raising capabilities - critical resources for a late-stage clinical pharmaceutical company developing kidney disease and gout therapies.

The compliance challenge creates additional uncertainty for a company that, based on its extremely low market capitalization, appears to be already facing significant investor skepticism about its clinical programs or financial stability.

CALGARY, Alberta, April 17, 2025 (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 and gout, announces receipt of notification from the Nasdaq Stock Market LLC Listing Qualifications Department that it is 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 (subject to Nasdaq’s discretion to extend this 10 day period under Rule 5810(c)(3)(H)), and the Company continues to meet the other listing requirements, 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 three clinically advanced products in development: 1) our lead program XRx-026 program for the treatment of gout; 2) XRx-008 program for ADPKD; and 3) XRx-101 for acute kidney and other acute organ injury associated with respiratory virus infections. In addition, the Company is developing XRx-225, a pre-clinical stage program for Type 2 diabetic nephropathy. XORTX is working to advance 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 that improve the quality of life and health of individuals with gout and other important diseases. Additional information on XORTX is available at www.xortx.com.

For more information, please contact:
Allen Davidoff, CEO adavidoff@xortx.com or +1 403 455 7727	Nick Rigopulos, Director of Communications nick@alpineequityadv.com or +1 617 901 0785

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 applicable securities laws. These forward-looking statements include, but are not limited to, the Company's beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. 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. Such risks, uncertainties, and other factors include, but are not limited to, our ability to obtain additional financing; the accuracy of our estimates regarding expenses, future revenues and capital requirements; the success and timing of our preclinical studies and clinical trials; the performance of third-party manufacturers and contract research organizations; our plans to develop and commercialize our product candidates; our plans to advance research in other kidney disease applications; and, our ability to obtain and maintain intellectual property protection for our product candidates. Except as otherwise required by applicable law and stock exchange rules, 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 Annual Report on Form 20-F 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.sedarplus.ca.

FAQ

What happens if XORTX stock (XRTX) fails to meet Nasdaq's minimum bid requirement?

If XORTX fails to meet the US$1.00 minimum bid price within 180 days, it risks being delisted from Nasdaq. However, the company has this period to regain compliance by maintaining a closing bid above US$1.00 for at least 10 consecutive business days.

How long does XORTX (XRTX) have to regain Nasdaq compliance in 2025?

XORTX has 180 calendar days from April 17, 2025, to regain compliance by achieving a closing bid price of US$1.00 or higher for a minimum of 10 consecutive business days.

Will XRTX be immediately delisted from Nasdaq due to the price deficiency notice?

No, XRTX will not be immediately delisted. The notification does not impact the company's current listing on the Nasdaq Capital Market, and trading continues while XORTX works to regain compliance.

Does the Nasdaq notification affect XRTX's listing on other exchanges?

No, the Nasdaq notification does not affect XORTX's listing status on the TSX Venture Exchange or Frankfurt Exchange.