Bio-Path Holdings, Inc. (NASDAQ:BPTH), a pharmaceutical company with a market capitalization of just $2.91 million, has received a notice from the Nasdaq Stock Market indicating potential delisting due to its stock price not meeting the minimum bid price requirement.
According to InvestingPro data, the stock has declined over 92% year-to-date, currently trading at $0.66. The notice, dated December 12, 2024, specifies that Bio-Path's common stock failed to maintain the $1.00 minimum bid price over the last 30 consecutive business days, as required by Nasdaq Listing Rule 5550(a)(2).
The company, headquartered in Bellaire, Texas, now has until June 10, 2025, to regain compliance with the minimum bid price rule. If the stock's closing bid price reaches $1.00 for at least ten consecutive business days before this deadline, the company will regain compliance.
InvestingPro analysis indicates the company faces financial challenges, with a WEAK overall Financial Health score and negative earnings of -$7.13 per share over the last twelve months. During this period, Bio-Path's stock will continue trading on The Nasdaq Capital Market under the ticker symbol "BPTH."
Bio-Path may be eligible for an additional 180-day compliance period if it meets all other initial listing standards, except for the bid price. If compliance is not achieved and a second compliance period is not granted, Nasdaq will notify the company of its common stock's potential delisting. The company could then appeal the decision to a Nasdaq Hearings Panel.
In related news from the same SEC filing, Bio-Path held its annual meeting on December 12, 2024. Shareholders approved an amendment to increase the number of shares available under the Bio-Path Holdings, Inc. 2022 Stock Incentive Plan by 1,200,000 shares, bringing the total to 1,265,000 shares.
Additionally, shareholders ratified the appointment of Ernst & Young, LLP as the independent auditor for the fiscal year ending December 31, 2024, and approved a reverse stock split of up to 1-for-30, to be determined by the Board.
The company's plans to address the Nasdaq compliance issue may include a reverse stock split, among other measures. While the company holds more cash than debt on its balance sheet, InvestingPro analysis shows that short-term obligations exceed liquid assets, with a current ratio of 0.86.
For deeper insights into Bio-Path Holdings' financial health and future prospects, including 10+ additional ProTips and comprehensive valuation metrics, visit InvestingPro. The information in this article is based on a press release statement from Bio-Path Holdings, Inc.
In other recent news, Bio-Path Holdings, Inc. announced a strategic shift in its clinical development priorities, emphasizing the potential of its drug candidate BP1001-A for the treatment of obesity and Type 2 diabetes. The company's decision comes as it discontinues Phase 1 trials for BP1001-A's counterpart, BP1002, due to challenges in patient enrollment.
Bio-Path is currently conducting preclinical studies to validate BP1001-A's effectiveness in enhancing insulin-mediated AKT activation, potentially offering a new therapeutic option for obese patients with Type 2 diabetes.
On the financial front, Bio-Path reported a net loss of $2.1 million for the third quarter of 2024, a decrease from the $3.2 million loss reported in the same period last year. Research and development expenses saw a reduction due to lower manufacturing and clinical trial costs, while there was a slight increase in general and administrative expenses. The company's cash position was reported at $0.6 million as of September 30, 2024.
CEO Peter Nielsen discussed the expansion of the DNAbilize platform into obesity and metabolic diseases during the earnings call. Updates were also provided on ongoing clinical trials for various cancer treatments.
Looking ahead, Bio-Path plans to reveal data from a solid tumor study early next year and is showing enthusiasm about entering the obesity and metabolic disease space with BP1001-A.
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