8-K: Salarius Pharmaceuticals Secures Further Nasdaq Delisting Extension

Salarius Pharmaceuticals, Inc. has received an additional extension from the Nasdaq Hearings Panel to regain compliance with both the Equity Standard and Minimum Bid Price Requirement by mid to late August 2025.

Summary

• Salarius Pharmaceuticals, Inc. (Salarius) received an additional extension from The Nasdaq Stock Market LLC (Nasdaq) Hearings Panel on July 28, 2025.
• The extension is for regaining compliance with Nasdaq Listing Rule 5550(b)(1) (the Equity Standard) by mid-August 2025.
• It also covers Nasdaq Listing Rule 5550(a)(2) (the Minimum Bid Price Requirement of $1.00 per share) by late August 2025.
• Salarius previously received a delisting notice on April 23, 2025, for failing the Minimum Bid Price Requirement, with its stock closing below $1.00 for 30 consecutive business days.
• The company was not eligible for the standard 180-calendar day compliance period due to a reverse stock split within the prior one-year period.
• On March 26, 2025, Salarius was notified of non-compliance with the Equity Standard based on its Form 10-K for the year ended December 31, 2024.
• The failure to meet the Minimum Bid Price Requirement meant Nasdaq would not entertain a compliance plan for the Equity Standard, requiring an appeal to the Hearings Panel.
• Salarius timely requested a hearing, which stayed any suspension or delisting action pending the conclusion of the hearing process.
• The Hearings Panel initially granted an extension on June 11, 2025, with milestones to regain Equity Standard compliance by early July 2025 and Minimum Bid Price compliance by early August 2025.
• Nasdaq granted a further extension for the Equity Standard to late July 2025 on July 11, 2025, before the latest extension.

Sentiment

Score: 4

Explanation: The company is facing significant compliance issues with Nasdaq, including a low stock price and insufficient equity, which are serious concerns. While extensions have been granted, providing temporary relief, the underlying problems persist and the risk of delisting remains high. The need for multiple extensions and a prior reverse stock split indicates ongoing financial challenges.

Positives

• Received an additional extension from the Nasdaq Hearings Panel to regain compliance with listing standards.
• The extension provides more time, until mid-August 2025 for the Equity Standard and late-August 2025 for the Minimum Bid Price Requirement, to avoid delisting.
• The company's appeal to the Hearings Panel successfully stayed any suspension or delisting action.

Negatives

• The company is currently non-compliant with Nasdaq Listing Rule 5550(b)(1) (Equity Standard) and Nasdaq Listing Rule 5550(a)(2) (Minimum Bid Price Requirement of $1.00 per share).
• The common stock's closing bid price was below $1.00 for 30 consecutive business days.
• A reverse stock split was effected during the prior one-year period, making the company ineligible for the standard 180-day compliance period for the bid price rule.
• Nasdaq would not entertain a compliance plan for the Equity Standard due to the concurrent bid price non-compliance, necessitating an appeal to the Hearings Panel.

Risks

• Risk of delisting from The Nasdaq Capital Market if compliance with the Equity Standard and Minimum Bid Price Requirement is not achieved by the extended deadlines.
• The company's stock price may continue to trade below the $1.00 minimum bid price, posing an ongoing challenge.
• Failure to meet scheduled milestones set by the Hearings Panel could lead to earlier delisting.

Future Outlook

The company has been granted an extension to regain compliance with Nasdaq's Equity Standard by mid-August 2025 and the Minimum Bid Price Requirement by late-August 2025. Continued listing is contingent on achieving these compliance milestones.

Industry Context

Small biotechnology and pharmaceutical companies often face significant challenges in maintaining Nasdaq listing standards, particularly the minimum bid price requirement, due to volatile stock performance, limited revenue, and reliance on capital raises. Compliance issues like those faced by Salarius are not uncommon in this sector, highlighting the financial pressures and market scrutiny these companies endure.

Comparison to Industry Standards

• Maintaining Nasdaq listing standards, including the $1.00 minimum bid price and the Equity Standard, is a fundamental requirement for publicly traded companies.
• Failure to meet these standards, as seen with Salarius, indicates a deviation from the basic operational and financial health expected of listed entities.
• Many small-cap biotech firms, such as those in early clinical stages or with limited commercial products, frequently encounter similar listing challenges.
• For example, companies like Sorrento Therapeutics (SRNEQ) or Athersys (ATHX) have faced delisting threats or undergone reverse stock splits to maintain compliance, illustrating a common struggle within the industry for companies that have not yet achieved significant commercial success or sustained profitability.

Stakeholder Impact

• Shareholders: Face significant risk of delisting, which could severely impact liquidity and the value of their investment. The prior reverse stock split and current low bid price indicate substantial share price depreciation.
• Employees: Potential uncertainty regarding the company's future if delisting occurs, which could affect morale and retention.

Next Steps

• Regain compliance with Nasdaq Listing Rule 5550(b)(1) (Equity Standard) by mid-August 2025.
• Regain compliance with Nasdaq Listing Rule 5550(a)(2) (Minimum Bid Price Requirement) by late-August 2025.
• Notify Nasdaq of achievements regarding scheduled milestones.

Key Dates

Keywords

Salarius Pharmaceuticals, SLRX, Nasdaq, Delisting, Compliance, Equity Standard, Minimum Bid Price, Reverse Stock Split, Biotechnology, Pharmaceuticals, SEC Filing, 8-K