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Celularity faces Nasdaq delisting over filing delay

Published 28/11/2024, 09:08 am

CELU
-1.29%

FLORHAM PARK, N.J. - Celularity Inc. (NASDAQ:CELU), a biopharmaceutical company, is currently not in compliance with Nasdaq's listing requirements due to a delay in filing its quarterly financial report. The company received a notification from Nasdaq on November 21, 2024, regarding the non-compliance, which was triggered by the company's failure to file its Q3 Form 10-Q for the period ending September 30, 2024, on time.

The notification does not affect the immediate trading of Celularity’s common stock and warrants on the Nasdaq Capital Market, where they are listed under the symbols "CELU" and "CELUW," respectively. However, the company must submit a plan to regain compliance by January 20, 2025. If Nasdaq accepts this plan, Celularity will have until May 13, 2025, to execute the plan and become compliant once again.

Celularity's CEO, Robert J. Hariri, acknowledged the delays, attributing them to a backlog from efforts to become current on previous filings, including the Forms 10-Q for the first and second quarters of 2024, which were recently completed. Despite the challenges, Hariri expressed a commitment to robust and timely financial reporting, stating that the company is close to completing the Q3 Form 10-Q and expects to file it shortly.

Celularity specializes in regenerative medicine, focusing on placental-derived allogeneic cell therapies and advanced biomaterial products. Its therapies target aging-related diseases, cancer, and immune disorders. The company believes that the placenta's unique biology can be harnessed to develop accessible and affordable therapies.

The company’s challenges with financial reporting infrastructure improvements and the associated delays in filing have been significant. However, Celularity has made progress and aims to set the stage for long-term success while ensuring compliance with Nasdaq's requirements going forward.

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This news is based on a press release statement and does not include any promotional content or endorsement of the company's claims. The information presented is factual and relevant to investors and stakeholders monitoring Celularity's compliance status with Nasdaq listing standards.

In other recent news, Celularity Inc. has reported over $24 million in net revenue from its biomaterial products for the first half of the year ending June 30, 2024. The company also expects more than $9 million in net revenue from its recently acquired Rebound™ product. However, these figures are preliminary and subject to change. Celularity has been working diligently to regain full compliance with Nasdaq's listing requirements, filing its annual report for fiscal year 2023 and its first quarter report for 2024 on time. In the product development arena, Celularity is making strides with several products such as Celularity Tendon Wrap, FUSE Bone Void Filler, and Celularity Placental Matrix undergoing preliminary FDA assessments. These are the recent developments in the company's operations. On a different note, Celularity has announced its acquisition of Rebound, a placental-derived allograft matrix, from Sequence LifeScience, Inc, expected to enhance its biomaterial product portfolio. Lastly, the company has been given until September 6, 2024, to present a plan to regain compliance due to non-compliance with Nasdaq's listing rules stemming from delayed financial reporting.

InvestingPro Insights

Celularity Inc.'s current financial situation adds context to its Nasdaq compliance issues. According to InvestingPro data, the company's market capitalization stands at $43.13 million, reflecting its small-cap status. This relatively small size may contribute to the challenges in maintaining robust financial reporting infrastructure.

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InvestingPro Tips highlight that Celularity is "quickly burning through cash" and "operates with a significant debt burden." These factors could be contributing to the company's difficulties in meeting filing deadlines and may explain the urgency in addressing compliance issues. The tip indicating that "short-term obligations exceed liquid assets" further underscores the financial pressures the company faces.

Despite these challenges, Celularity has shown a "strong return over the last month," with InvestingPro data revealing a 53.23% price total return in the past month. This recent market performance suggests that investors may be optimistic about the company's potential to overcome its current hurdles.

It's worth noting that analysts anticipate a sales decline in the current year, which aligns with the company's focus on improving its financial reporting rather than immediate growth. The InvestingPro Tip stating that analysts do not anticipate profitability this year is consistent with the reported operating income of -$44.7 million for the last twelve months.

For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into Celularity's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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