Onconetix, Inc., a pharmaceutical company with a market capitalization of just $3.98 million, has received a notification from The Nasdaq Stock Market LLC indicating non-compliance with the minimum bid price requirement.
The notice, dated January 23, 2025, pointed out that Onconetix's common stock, currently trading at $0.48, had closed below the required $1.00 per share from November 25, 2024, to January 10, 2025. According to InvestingPro data, the stock has experienced significant volatility, falling 92.63% over the past six months.
Despite the warning, the company's listing on The Nasdaq Capital Market remains active, with no immediate impact on the trading of its common stock, symbol ONCO. Onconetix has been granted a 180-day period, until July 22, 2025, to address the issue and meet Nasdaq's minimum bid price condition. InvestingPro analysis reveals concerning fundamentals, with a WEAK Financial Health Score of 1.12 out of 5 and significant cash burn rate. Subscribers can access 14 additional ProTips about ONCO's financial situation.
To regain compliance, the closing bid price of Onconetix's common stock must reach or exceed $1.00 for at least ten consecutive business days during this grace period. Nasdaq may choose to extend this timeframe at its discretion. If compliance is achieved, Onconetix will receive a written confirmation from Nasdaq and the matter will be considered resolved.
Should Onconetix fail to meet the minimum bid price by the end of the initial 180-day period, it may be eligible for an additional 180 days to regain compliance. This extension is contingent upon meeting all other original listing standards for The Nasdaq Capital Market, except for the minimum bid price, and the company must express its intention to rectify the deficiency.
Onconetix is actively monitoring the situation and is committed to fulfilling Nasdaq's requirements within the provided timeline. In the event that the company does not achieve compliance within the designated periods, including any potential extensions, it could face delisting. However, Onconetix would have the right to appeal such a decision to a Nasdaq hearings panel.
In other recent news, Onconetix has seen significant financial and corporate developments. The pharmaceutical company has settled an agreement with IQVIA, resolving potential termination payments and agreeing to pay a sum of $150,000. This resulted in Onconetix recording an adjustment of approximately negative $0.9 million in its accounts payable. Furthermore, Onconetix has addressed a Nasdaq notice by filing an overdue quarterly report, enhancing transparency with its investors and compliance with market regulations.
Onconetix has also amended its forbearance agreement with Veru (NASDAQ:VERU) Inc., modifying payment terms to secure additional financial flexibility. This amendment allows Onconetix to delay payment due in October 2024 until it secures at least $97,000 from its equity line of credit with Keystone Capital Partners (WA:CPAP) LLC. In addition, the company has raised approximately $2 million through a private placement for working capital and general corporate purposes.
Other recent actions include the acquisition of Proteomedix, a change in its independent registered public accounting firm, and the implementation of a reverse stock split and issuance of additional equity. Changes in the executive team have also occurred, with the departure of former CFO Bruce Harmon and the appointment of Karina M. Fedasz as the interim CFO.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.