8-K: Acurx Pharmaceuticals Faces Nasdaq Delisting Notice Due to Low Share Price

Acurx Pharmaceuticals received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, giving them until August 25, 2025, to regain compliance.

Summary

• Acurx Pharmaceuticals, Inc. received a notification from Nasdaq on February 24, 2025, stating that its common stock did not maintain a minimum closing bid price of $1.00 per share for the preceding 31 consecutive business days.
• This violates Nasdaq Listing Rule 5550(a)(2).
• Acurx has a grace period until August 25, 2025, to regain compliance.
• Compliance can be achieved if the stock price closes at or above $1.00 for at least 10 consecutive business days during the compliance period.
• If compliance is not achieved by August 25, 2025, Acurx may be eligible for additional time if it meets other listing requirements and notifies Nasdaq of its intent to cure the deficiency, potentially through a reverse stock split.
• If Acurx cannot cure the deficiency or is ineligible, Nasdaq may delist the company's common stock, a decision the company could appeal.
• Acurx intends to monitor its stock price and consider options to regain compliance, but there is no guarantee it will succeed.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the delisting notice, indicating potential financial distress and uncertainty about the company's future.

Positives

• Acurx has a grace period of 180 calendar days, until August 25, 2025, to regain compliance.
• The company can regain compliance automatically if its stock price closes at or above $1.00 for 10 consecutive business days.
• Acurx may be eligible for additional time to comply if it meets other listing requirements and intends to cure the deficiency.

Negatives

• Acurx's common stock did not maintain a minimum closing bid price of $1.00 per share for 31 consecutive business days.
• The company faces potential delisting from the Nasdaq Capital Market if it fails to regain compliance by August 25, 2025.
• There is no assurance that Acurx will be able to regain compliance or that Nasdaq will grant a further extension.

Risks

• Failure to regain compliance with Nasdaq's minimum bid price requirement could lead to delisting.
• The company's stock price may not increase sufficiently to meet the compliance requirements.
• Nasdaq may not grant a further extension of time to regain compliance.
• A reverse stock split, if implemented, may not be sufficient to maintain compliance in the long term.

Future Outlook

Acurx intends to actively monitor the bid price of its common stock and will consider available options to regain compliance with the Minimum Bid Price Requirement; however, there can be no assurance that the Company will be able to regain compliance.

Management Comments

• David P. Luci, President and Chief Executive Officer, signed the report on behalf of Acurx Pharmaceuticals, Inc.

Industry Context

Delisting notices are not uncommon for smaller pharmaceutical companies, especially those in the development stage, as their stock prices can be volatile and sensitive to clinical trial results and regulatory approvals. Many companies in similar situations explore options such as reverse stock splits or attempt to raise capital to improve their financial position and stock price.

Comparison to Industry Standards

• Many small-cap biotech companies face similar challenges with maintaining Nasdaq listing requirements.
• Companies like Diffusion Pharmaceuticals and Lineage Cell Therapeutics have also received delisting notices in the past.
• Reverse stock splits are a common strategy employed by companies in this situation, although their long-term effectiveness can vary.

Stakeholder Impact

• Shareholders may experience a decline in the value of their investment if the company is delisted.
• Employees may face uncertainty about their job security if the company's financial situation worsens.
• The company's ability to raise capital and fund its research and development programs may be negatively impacted.

Next Steps

• Acurx will monitor its stock price.
• Acurx will consider available options to regain compliance with the Minimum Bid Price Requirement.
• Acurx may need to notify Nasdaq in writing of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary.

Key Dates