Lipella Pharmaceuticals Faces Nasdaq Delisting Warning

TL;DR

Nasdaq is kicking Lipella Pharma off the exchange, filing says.

AI Summary

Lipella Pharmaceuticals Inc. received a notice on October 18, 2024, indicating it failed to meet the continued listing standards for The Nasdaq Capital Market. The company was notified on October 16, 2024, that it is not in compliance with certain listing rules, prompting this 8-K filing.

Why It Matters

This filing signals potential delisting from Nasdaq, which could significantly impact the company's stock liquidity and investor confidence.

Risk Assessment

Risk Level: high — Failure to meet listing standards and potential delisting poses a significant risk to the company's operations and stock value.

Key Players & Entities

• Lipella Pharmaceuticals Inc. (company) — Registrant
• Nasdaq Capital Market (company) — Listing Exchange
• October 18, 2024 (date) — Filing Date
• October 16, 2024 (date) — Notification Date

FAQ

Key Financial Figures

• $0.0001 — registered Common Stock, par value $0.0001 per share LIPO The Nasdaq Stock Mar
• $1.00 — ment to maintain a minimum bid price of $1.00 per share of its Common Stock, as set f
• $2,500,000 — Capital Market to maintain a minimum of $2,500,000 in stockholders' equity for continued l
• $1,703,798 — ompany reported stockholders' equity of $1,703,798 in its Quarterly Report on Form 10-Q fo

Filing Documents

• g084492_8k.htm (8-K) — 38KB
• 0001753926-24-001716.txt ( ) — 212KB
• lipo-20241018.xsd (EX-101.SCH) — 3KB
• lipo-20241018_lab.xml (EX-101.LAB) — 33KB
• lipo-20241018_pre.xml (EX-101.PRE) — 22KB
• g084492_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. As previously disclosed, on April 17, 2024, Lipella Pharmaceuticals Inc. (the "Company") received a letter from the Nasdaq Listing Qualifications staff (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq") stating that, based upon the closing bid price of the Company's common stock, par value $0.0001 per share (the "Common Stock"), for the 30 consecutive business days prior to such letter, the Company was not in compliance with the requirement to maintain a minimum bid price of $1.00 per share of its Common Stock, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided 180 calendar days, or until October 14, 2024, to regain compliance with the Minimum Bid Price Requirement. As also previously disclosed, on August 21, 2024, the Company received a letter from the Staff stating that it was not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires companies listed on the Nasdaq Capital Market to maintain a minimum of $2,500,000 in stockholders' equity for continued listing (the "Stockholders' Equity Requirement"). The Company reported stockholders' equity of $1,703,798 in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and, as a result, did not satisfy the Stockholders' Equity Requirement . On October 16, 2024, the Company received a letter (the "October Letter") from the Staff stating that although the Company submitted a plan to regain compliance with the Stockholders' Equity Requirement on October 4, 2024, pursuant to Nasdaq Listing Rule 5810(d)(2), the Company's failure to comply with the Stockholders' Equity Requirement serves as a separate and additional reason for delisting from the Company's failure to comply with the Minimum Bid Price Requirement, and, therefore, the Common Stock will be delisted from

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K (this "Form 8-K") contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements that express the Company's intentions, beliefs, expectations, strategies, predictions or any other statements related to the Company's future activities, or future events or conditions, including, but not limited to those related to compliance with the Minimum Bid Price Requirement and the Stockholders' Equity Requirement and the ability to obtain a favorable decision from the Panel, which can be identified by terminology such as "may," "will," "expects," "anticipates," "aims," "potential," "future," "intends," "plans," "believes," "estimates," "continue," "likely to" and other similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are not historical facts and are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, many of which are beyond the Company's control, including risks related to the Company's ability to regain compliance with Nasdaq listing standards, the Company's ability to obtain an extension of time from Nasdaq for compliance with the Minimum Bid Price Requirement and the Stockholders' Equity Requirement, the Company's ability to obtain a favorable decision from the Panel, the Company's ability to take other actions that may be required for its continued listing on Nasdaq, the Company's current liquidity position and the need to obtain additional financing to support ongoing operations, and o

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. Date: October 18, 2024 Lipella Pharmaceuticals Inc. By: /s/ Jonathan Kaufman Name: Jonathan Kaufman Title: Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR