PITTSBURGH, PA – Lipella Pharmaceuticals Inc. (NASDAQ:LIPO), a pharmaceutical company focused on developing treatments for urological disorders, has received a notice from the Nasdaq Hearings Panel regarding its potential delisting due to non-compliance with the stock market's listing rules. The company's stock has already experienced significant pressure, with InvestingPro data showing a 65.8% decline over the past year and a market capitalization of just $3.51 million.
On January 10, 2025, the company was granted a conditional extension to meet the Nasdaq Capital Market's Minimum Stockholders’ Equity Requirement. Lipella must provide a detailed public disclosure by April 14, 2025, outlining efforts to raise equity and an update on its fundraising plans, including projected income for the following year and strategies to maintain compliance with Nasdaq's Minimum Bid Price Requirement.
The company has expressed its intention to comply with the Panel's conditions and to meet the Minimum Stockholders’ Equity Requirement by the specified deadline. However, Lipella has cautioned that there is no guarantee it will be able to meet these obligations or maintain compliance with Nasdaq's continued listing standards in the future.
Failure to satisfy the Panel’s conditions could result in the delisting of Lipella's common stock from the Nasdaq Capital Market. Such a move could have significant implications for the company's stock liquidity and investor access.
The notice from Nasdaq is a forward-looking statement subject to various risks and uncertainties, including Lipella's ability to secure additional financing and maintain its listing status. The company has not provided further comments on the potential outcomes or its plans to address the Nasdaq's concerns.
In other recent news, Lipella Pharmaceuticals has faced significant developments. The micro-cap biopharmaceutical company failed to reach a quorum at its special meeting of stockholders, resulting in the cancellation of the meeting with no actions taken on the proposal at hand. Lipella Pharmaceuticals has also rescheduled its special stockholders meeting due to the lack of quorum.
In light of financial challenges, the company initiated a reverse stock split and a registered direct offering of its common stock, with H.C. Wainwright & Co. serving as the exclusive placement agent. This aims to raise approximately $1.28 million.
The company is also grappling with potential delisting from Nasdaq due to non-compliance with the exchange's listing requirements. In response, Lipella has requested a hearing to appeal the decision.
Despite these challenges, Lipella Pharmaceuticals reported positive early results from a Phase 2a clinical trial for LP-310, a treatment for Oral Lichen Planus. Furthermore, it initiated a Phase 2b clinical trial for LP-10, a potential remedy for hemorrhagic cystitis, with preliminary approval from the U.S. Food & Drug Administration.
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