Avalo Therapeutics Faces Nasdaq Delisting

TL;DR

AVTX is getting kicked off Nasdaq, looking for ways to stay listed.

AI Summary

Avalo Therapeutics, Inc. (AVTX) received a notice on May 20, 2024, indicating it failed to meet the continued listing standards of the Nasdaq Capital Market. The company is currently evaluating its options to regain compliance and avoid delisting.

Why It Matters

Failure to meet listing standards can significantly impact a company's stock liquidity and investor confidence, potentially leading to a lower stock price.

Risk Assessment

Risk Level: high — The company is at high risk due to failing to meet Nasdaq's continued listing standards, which could lead to delisting.

Key Players & Entities

• Avalo Therapeutics, Inc. (company) — Registrant
• Nasdaq Capital Market (company) — Listing Exchange
• May 20, 2024 (date) — Date of notice

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 Par Value AVTX Nasdaq Capital Market
• $2,500,000 — ule 5550(b)(1) to maintain a minimum of $2,500,000 in stockholders' equity for continued l
• $112.6 million — ported stockholders' equity of negative $112.6 million in its Form 10-Q for the period ended M

Filing Documents

• avtx-20240520.htm (8-K) — 25KB
• 0001628280-24-024920.txt ( ) — 142KB
• avtx-20240520.xsd (EX-101.SCH) — 2KB
• avtx-20240520_lab.xml (EX-101.LAB) — 21KB
• avtx-20240520_pre.xml (EX-101.PRE) — 12KB
• avtx-20240520_htm.xml (XML) — 3KB

01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On May 20, 2024, Avalo Therapeutics, Inc. (the "Company") received a notice (the "Notice") from the Listing Qualifications Department (the "Staff") of the Nasdaq Stock Market LLC ("Nasdaq") informing the Company that it no longer complies with the requirement under Nasdaq Listing Rule 5550(b)(1) to maintain a minimum of $2,500,000 in stockholders' equity for continued listing on the Nasdaq Capital Market (the "Stockholders' Equity Requirement") because the Company reported stockholders' equity of negative $112.6 million in its Form 10-Q for the period ended March 31, 2024, and, as of the date of the Notice, the Company did not meet the alternatives of market value of listed securities or net income from continuing operations (together with the Stockholders' Equity Requirement, the "Listing Rule") . In accordance with the Nasdaq Listing Rules, the Company has 45 calendar days, until July 5, 2024, to submit a plan to regain compliance, which the Company plans to timely submit for the Staff's consideration. If the plan is accepted, the Staff may grant the Company an extension period of up to 180 calendar days from the date of the Notice to evidence compliance. The notice from Nasdaq has no immediate effect on the listing of the Company's common stock and its common stock will continue to be listed on the Nasdaq Capital Market under the symbol "AVTX". The Company is currently evaluating its options for regaining compliance. There can be no assurance that the Staff will accept the Company's plan to regain compliance with the Listing Rule or, if accepted, that the Company will evidence compliance with the Listing Rule during any extension period that the Staff may grant. If the Staff does not accept the Company's plan or if the Company is unable to regain compliance within any extension period granted by the Staff, the Staff would be required to issue a del

View Full Filing

View this 8-K filing on SEC EDGAR