Gyre Therapeutics Faces Nasdaq Delisting Warning

TL;DR

Gyre Therapeutics got a Nasdaq delisting warning for low stock price, has until Dec 23 to fix it.

AI Summary

Gyre Therapeutics, Inc. announced on June 28, 2024, that it received a notification from Nasdaq on June 27, 2024, indicating a failure to meet the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The company plans to regain compliance by the specified deadline.

Why It Matters

Failure to meet listing requirements could lead to delisting from Nasdaq, impacting the stock's liquidity and investor confidence.

Risk Assessment

Risk Level: medium — The company is at risk of being delisted from Nasdaq if it cannot meet the minimum bid price requirement.

Key Numbers

• $1.00 — Minimum Bid Price (Requirement for Nasdaq listing)

Key Players & Entities

• Gyre Therapeutics, Inc. (company) — Registrant
• Nasdaq (company) — Stock Exchange
• June 28, 2024 (date) — Date of Report
• June 27, 2024 (date) — Date of Nasdaq Notification
• December 23, 2024 (date) — Deadline to regain compliance

FAQ

Filing Documents

• ef20032140_8k.htm (8-K) — 30KB
• 0001140361-24-032511.txt ( ) — 164KB
• gyre-20240628.xsd (EX-101.SCH) — 4KB
• gyre-20240628_lab.xml (EX-101.LAB) — 21KB
• gyre-20240628_pre.xml (EX-101.PRE) — 16KB
• ef20032140_8k_htm.xml (XML) — 4KB

01

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard Transfer of Listing. On June 30, 2024, Gyre Therapeutics, Inc. (the " Company") notified the Nasdaq Stock Market LLC ("Nasdaq") that, following Nassim Usman's resignation as a member of the Company's Board of Directors (the "Board") and as a member of the Audit Committee of the Board (the " Audit Committee"), the Company has a vacancy on its Audit Committee and intends to rely on the cure period set forth in the Nasdaq Listing Rules while it recruits a new Audit Committee member, as described in more detail below. On July 2, 2024, the Company received a letter from Nasdaq confirming that the Company is no longer in compliance with Nasdaq's audit committee composition requirements as set forth in Nasdaq Listing Rule 5605, which requires that the audit committee of a listed company be comprised of at least three "independent directors" (as defined in Nasdaq Listing Rule 5605(a)(2)). Pursuant to Nasdaq Listing Rule 5605(c)(4), the Company intends to rely on the cure period to reestablish compliance with Nasdaq Listing Rule 5605. The cure period is generally defined as until the earlier of the Company's next annual meeting of stockholders or June 30, 2025. The Board is in the process of identifying and selecting a new member of the Board who qualifies as "independent" and meets the audit committee criteria set forth in Nasdaq Listing Rule 5605. The Board intends to comply fully with Nasdaq audit committee requirements by or before the end of the cure period described above.

02

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers On June 28, 2024, Nassim Usman, Ph.D. informed the Company that he intended to resign from the Board, effective as of June 30, 2024. In addition, on June 28, 2024, Dr. Usman stepped down as a member of the Audit Committee, effective June 30, 2024. Dr. Usman's resignation was not due to any disagreements with the Company relating to the Company's operations, policies or practices.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GYRE THERAPEUTICS, INC. Date: July 5, 2024 By: /s/ Ruoyu Chen Name: Ruoyu Chen Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR