UK MedTech Renalytix is to appeal against a delisting from the Nasdaq exchange.
Renalytix, which is targeting kidney disease, is dual-listed in New York and London.
In December it was notified by Nasdaq that it was at risk of being delisted in the United States after failing to meet a minimum bid price over 30 consecutive business days.
Additionally, the company’s market value of listed securities failed to meet the $50 million threshold required.
A 180-day compliance period granted to Renalytix ended on June 19th and it has not managed to regain enough value in the share price or valuation in that time.
As the company states, “potential delisting raises concerns about the impact on stock liquidity and the company’s ability to raise capital”.
Renalytix intends to submit an appeals hearing request, where it will then present a strategic plan to regain compliance.
In the interim, the company’s shares will continue to trade on Nasdaq.
Its share price in London dropped from 17p to 15p in early trading this morning following the news.
Renalytix reported a decrease in third-quarter revenue to $535,000 – down from $724,000 in the previous year – alongside a 40% reduction in operating expenses to $6.5 million.
O. James Sterling recently resigned as CFO, with Joel Jung appointed in his place on an interim basis.