Avenue Therapeutics Receives Delist Letter from Nasdaq, Plans Hearing with Independent Panel

Avenue Therapeutics, Inc. (NASDAQ: ATXI), a pharmaceutical company based in Bay Harbor Islands, Florida, recently disclosed in a Form 8-K filing that it received a delist letter from The Nasdaq Stock Market LLC. The company was notified that it was not in compliance with the minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1). This rule mandates companies listed on The Nasdaq Capital Market to maintain stockholders’ equity of at least $2,500,000.

The delist letter, received on November 26, 2024, raised concerns based on the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2024, which reported stockholders’ equity of $1,652,000. Despite a previous confirmation in June 2024 that the Company had regained compliance with the Stockholders’ Equity Requirement, a Mandatory Panel Monitor was imposed for a year, or until May 21, 2025. This Monitor necessitated a Delist Determination Letter if the Company failed to maintain compliance with the Stockholders’ Equity Requirement, leading to the decision by Nasdaq to delist the Company’s securities from The Nasdaq Capital Market.

Although the delist letter does not have an immediate effect on the listing or trading of Avenue Therapeutics’ common stock, which will continue to trade under the symbol “ATXI,” the Company plans to request a hearing before an independent Hearings Panel in response to the delisting decision. The Company intends to demonstrate at the hearing its current compliance with the stockholders’ equity requirement and its ability to sustain long-term equity compliance.

Investors are advised that this announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties, and assumptions that may differ from actual outcomes. Factors that could impact results include the Company’s ability to gain regulatory approval for product candidates, financial conditions, and potential regulatory hurdles.

Investors and stakeholders are encouraged to evaluate all statements made in accordance with the forward-looking statements to make informed decisions based on the evolving situation. The Company has expressed commitment to updating stakeholders as necessary and abiding by disclosure requirements as they unfold.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Avenue Therapeutics’s 8K filing here.

About Avenue Therapeutics

Avenue Therapeutics, Inc, a specialty pharmaceutical company, focuses on the development and commercialization of therapies for the treatment of neurologic diseases. Its product candidates include AJ201, which is in a Phase 1b/2a clinical trial for the treatment of spinal and bulbar muscular atrophy; intravenous tramadol for the treatment of post-operative acute pain; and BAER-101 for the treatment of epilepsy and panic disorders.