AquaBounty Technologies Inc (NASDAQ:AQB)., a biotechnology company specializing in the aquaculture sector, has received a notice from Nasdaq regarding non-compliance with the exchange's minimum bid price requirement.
The notice, dated January 15, 2025, was issued after the company's stock closed below the $1.00 minimum bid price for 32 consecutive business days. According to InvestingPro data, the company's stock has declined over 54% in the past six months, with its current market capitalization standing at just $3.08 million.
The current trading of AquaBounty's common stock, under the ticker symbol "AQB", remains unaffected by the notice and continues on the Nasdaq Capital Market. The company has been provided with a 180-day period, ending on July 15, 2025, to regain compliance.
To meet Nasdaq's requirements, the closing bid price of AquaBounty's common stock must reach at least $1.00 per share for at least ten consecutive business days during this timeframe. InvestingPro analysis reveals concerning fundamentals, with the company burning through cash rapidly and operating with significant debt, though its current ratio of 3.02 indicates sufficient liquid assets to meet short-term obligations.
If AquaBounty fails to comply by the July deadline, it may qualify for an additional 180-day period to address the bid price deficiency, provided it meets all other initial listing standards for the Nasdaq Capital Market, aside from the bid price. The company might also consider implementing a reverse stock split to achieve compliance. Trading at a price-to-book ratio of just 0.03, InvestingPro analysis suggests the stock is currently undervalued, though investors should note that analysts anticipate sales decline in the current year.
In the event of non-compliance after the second period, Nasdaq will issue a notification of delisting, which AquaBounty could appeal before a Nasdaq hearings panel. AquaBounty has expressed its intention to monitor its stock's closing bid price closely and is considering possible actions to regain compliance with the Nasdaq's minimum bid price requirement.
The information disclosed is based on AquaBounty's recent SEC filing and contains forward-looking statements regarding the company's plans to regain compliance. AquaBounty has acknowledged the uncertainty of these outcomes in its filings with the SEC, including its annual and quarterly reports. The company has not committed to any specific course of action and has not guaranteed its ability to regain or maintain compliance with Nasdaq's listing standards.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.