Purple Biotech Gets Nasdaq Delisting Warning for Low Bid Price
Ticker: PPBT · Form: 6-K · Filed: Jan 26, 2024 · CIK: 1614744
Complexity: simple
Sentiment: bearish
Topics: delisting-risk, nasdaq-compliance, minimum-bid-price, regulatory-filing
TL;DR
**Purple Biotech got a Nasdaq delisting warning for its stock price being too low; they have until July 23, 2024, to fix it.**
AI Summary
Purple Biotech Ltd. received a notification from Nasdaq on January 25, 2024, stating that its American Depositary Shares (ADSs) failed to maintain the minimum $1.00 bid price for 30 consecutive business days, from December 11, 2023, to January 24, 2024. The company now has 180 calendar days, until July 23, 2024, to regain compliance by having its ADSs close at or above $1.00 for at least ten consecutive business days. This matters to investors because failure to comply could lead to delisting from Nasdaq, potentially reducing liquidity and investor confidence.
Why It Matters
Failure to meet Nasdaq's minimum bid price requirement could lead to delisting, making it harder for investors to trade shares and potentially decreasing the stock's value.
Risk Assessment
Risk Level: high — The company faces a significant risk of delisting if it cannot raise its share price above $1.00 within the specified timeframe.
Analyst Insight
Investors should monitor Purple Biotech's stock price closely and consider the potential for a reverse stock split or delisting, which could impact their investment.
Key Numbers
- $1.00 — Minimum Bid Price (Required closing bid price for Nasdaq listing)
- 30 — Consecutive Business Days (Period Purple Biotech's ADSs traded below $1.00)
- 180 — Calendar Days (Initial period to regain compliance)
- 10 — Consecutive Business Days (Required period for ADSs to close at or above $1.00 to regain compliance)
Key Players & Entities
- Purple Biotech Ltd. (company) — the registrant receiving the Nasdaq notification
- Nasdaq Stock Market LLC (company) — the exchange issuing the minimum bid price notification
- $1.00 (dollar_amount) — the minimum bid price requirement
- January 25, 2024 (date) — date Purple Biotech received the notification letter
- July 23, 2024 (date) — deadline to regain compliance with Nasdaq's minimum bid price rule
Forward-Looking Statements
- Purple Biotech will implement a reverse stock split to increase its share price above $1.00. (Purple Biotech Ltd.) — medium confidence, target: July 23, 2024
- The company's stock price will remain volatile as it approaches the compliance deadline. (Purple Biotech Ltd.) — high confidence, target: July 23, 2024
FAQ
What specific Nasdaq Listing Rule did Purple Biotech Ltd. violate?
Purple Biotech Ltd. did not meet the minimum bid price of $1.00 per share required for continued listing on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2).
When did Purple Biotech Ltd. receive the notification from Nasdaq?
Purple Biotech Ltd. received the letter from the Listings Qualifications Department of The Nasdaq Stock Market LLC on January 25, 2024.
What was the period during which Purple Biotech's ADSs failed to meet the minimum bid price requirement?
The closing bid price of the Company’s ADSs was below $1.00 for the last 30 consecutive business days, from December 11, 2023, to January 24, 2024.
What is the deadline for Purple Biotech Ltd. to regain compliance with the minimum bid price rule?
The Company has an initial period of 180 calendar days from the date of the notification letter, or until July 23, 2024, to regain compliance.
How can Purple Biotech Ltd. regain compliance with Nasdaq's minimum bid price requirement?
The Company can regain compliance if the closing bid price of its ADSs is at least $1.00 for a minimum of ten consecutive business days before July 23, 2024.
Filing Stats: 920 words · 4 min read · ~3 pages · Grade level 20 · Accepted 2024-01-26 16:15:28
Key Financial Figures
- $1.00 — y did not meet the minimum bid price of $1.00 per share required for continued listin
Filing Documents
- ea192266-6k_purplebio.htm (6-K) — 16KB
- 0001213900-24-006985.txt ( ) — 17KB
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, thereunto duly authorized. January 26, 2024 PURPLE BIOTECH LTD. By: /s/ Lior Fhima Lior Fhima Chief Financial Officer 2