CAMBRIDGE, MA – Syros Pharmaceuticals (NASDAQ:SYRS), Inc., a pharmaceutical company currently trading at $0.21 with a market capitalization of just $5.58 million, has been notified of non-compliance with several Nasdaq Global Select Market listing requirements, which could potentially lead to the delisting of its common stock if remedial actions are not successfully implemented. According to InvestingPro analysis, the company's stock has experienced significant volatility, with a beta of 1.31, making it more volatile than the broader market.
The company received deficiency letters from Nasdaq on Monday, indicating that for the past 35 business days, the bid price of Syros' common stock has been below the $1.00 minimum requirement. The stock has faced severe challenges, with InvestingPro data showing a dramatic 96.6% decline over the past year. Additionally, the company's Market Value of Listed Securities (MVLS) and Market Value of Publicly Held Shares (MVPHS) have not met the requisite thresholds of $50 million and $15 million, respectively, for the last 30 and 35 consecutive business days. InvestingPro's comprehensive analysis reveals 14 additional key insights about Syros's financial health and market position.
These notifications do not immediately affect the listing of Syros' common stock, which trades under the ticker NASDAQ:SYRS. However, the company must regain compliance by July 7, 2025, to avoid delisting. To do so, the bid price must close at $1.00 or higher for at least ten consecutive business days within the 180-day grace period. Similarly, MVLS and MVPHS must meet or exceed their respective minimums for ten consecutive business days during this time.
Syros has expressed its intention to actively monitor the situation and consider all available options to regain compliance. The company may consider transferring its listing to the Nasdaq Capital Market, which has different requirements, as a potential solution.
Despite the current non-compliance, there is no guarantee that Syros will meet the necessary criteria within the grace period. While the company maintains a healthy current ratio of 2.25, indicating sufficient liquid assets to meet short-term obligations, InvestingPro's Financial Health Score of 1.3 (labeled as WEAK) suggests significant underlying challenges.
If Syros fails to regain compliance, it may receive a written notification of delisting, which can be appealed to a Nasdaq Listing Qualifications Panel. For detailed insights into Syros's financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Syros Pharmaceuticals has secured a forbearance agreement with Oxford Finance after defaulting on a loan. The company has made a substantial payment towards the outstanding loan and aims for a resolution by the end of February 2025. This development comes after the failure of the Phase 3 SELECT-MDS-1 trial, which led to downgrades of the company's stock by H.C. Wainwright, TD Cowen, and JMP Securities.
Additionally, Syros has enacted a 94% workforce reduction and announced the departure of several directors and officers. Despite these challenges, the company reported no revenue for Q3 2024 and a net loss of $6.4 million, but maintains sufficient cash reserves to fund operations into Q3 2025.
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