SPRO
Spero Therapeutics, INC
NASDAQ
8-K: Spero Therapeutics Receives Nasdaq Deficiency Notice for Minimum Bid Price
Sentiment:
8-K Filing
28 February 2025 5:11 PM
Spero Therapeutics has been notified by Nasdaq that its common stock price fell below the required $1.00 minimum, potentially leading to delisting if not rectified by August 25, 2025.
Worse than expected
The company's stock price falling below the Nasdaq minimum bid price requirement is worse than expected.
Summary
- Spero Therapeutics received a deficiency letter from Nasdaq on February 25, 2025, because its stock price fell below the $1.00 minimum bid price requirement.
- The company has until August 25, 2025, to regain compliance by maintaining a stock price of at least $1.00 for a minimum of 10 consecutive business days.
- If compliance isn't achieved, Spero Therapeutics may be eligible for an additional 180-day compliance period by transferring its listing to the Nasdaq Capital Market, meeting initial listing standards (excluding the bid price), paying an application fee, and providing written notice of intent to cure the deficiency, potentially through a reverse stock split.
- Nasdaq will review the company's ability to cure the deficiency.
- Failure to cure the deficiency could result in a delisting notice, which the company can appeal to a Nasdaq Listing Qualifications Panel, though success isn't guaranteed.
- Spero Therapeutics intends to monitor its stock price and consider options to regain compliance.
Sentiment
Score: 3
Explanation: The sentiment is negative due to the deficiency notice and potential delisting, indicating financial vulnerability. However, the company has a period to regain compliance, offering a glimmer of hope.
Positives
- Spero Therapeutics has until August 25, 2025, to regain compliance with the Nasdaq's minimum bid price requirement.
- The company may be eligible for an additional 180-day compliance period if it transfers to the Nasdaq Capital Market.
Negatives
- Spero Therapeutics' stock price has fallen below the $1.00 minimum bid price required for continued listing on the Nasdaq Global Select Market.
- Failure to regain compliance could result in delisting from the Nasdaq.
Risks
- Spero Therapeutics faces the risk of delisting from the Nasdaq if it fails to regain compliance with the minimum bid price requirement by August 25, 2025.
- There is no guarantee that an appeal to a Nasdaq Listing Qualifications Panel would be successful if a delisting notice is received.
- The company's ability to cure the deficiency is subject to Nasdaq's review and approval.
Future Outlook
Spero Therapeutics intends to actively monitor its stock price and consider implementing available options to regain compliance with the Nasdaq Listing Rules.
Industry Context
Many small biotech companies face challenges in maintaining share price compliance, especially during periods of clinical trial setbacks or market volatility. This notice reflects the financial pressures and market scrutiny faced by companies in the pharmaceutical sector.
Comparison to Industry Standards
- Many small-cap biotech companies face similar challenges with maintaining Nasdaq listing requirements.
- Companies like Agenus and Ocugen have faced similar delisting warnings in the past, often resorting to reverse stock splits to regain compliance.
- The outcome for Spero will depend on their ability to execute on their clinical programs and improve investor confidence, similar to how BioCryst Pharmaceuticals turned around its stock performance through successful drug development.
Stakeholder Impact
- Shareholders face the risk of further stock price decline and potential delisting.
- Employees may experience uncertainty due to the company's financial situation.
- The company's ability to raise capital and fund its operations could be impacted.
Next Steps
- Spero Therapeutics will monitor its stock price.
- Spero Therapeutics will consider options to regain compliance with Nasdaq Listing Rules.
- Spero Therapeutics may implement a reverse stock split.
Key Dates
- February 25, 2025: Date of the deficiency letter from Nasdaq.
- August 25, 2025: Compliance Date to regain compliance with the Bid Price Requirement.
Keywords
SPRO
Spero Therapeutics, INC
NASDAQ
Sector: TBD
Filings with Classifications
Better than expected
28 May 2025 7:12 AM
Clinical Trial Results
- The Phase 3 PIVOT-PO trial met its primary endpoint of non-inferiority.
- The trial was stopped early for efficacy, indicating stronger-than-anticipated positive results.
- No new safety concerns were identified, reinforcing the drug's safety profile.
Worse than expected
13 May 2025 4:49 PM
Earnings Release
- The company reported a higher net loss compared to the same quarter last year.
- The company reported lower revenue compared to the same quarter last year.
Capital raise
13 May 2025 4:15 PM
Quarterly Report
- The company expects that it will need substantial additional funding.
- The company will seek additional funding through public or private financings, debt financing, collaboration agreements, government grants or other sources.
- The company has a universal shelf registration statement on Form S-3 with the SEC on March 15, 2024, which became effective on March 22, 2024, and pursuant to which the company registered for sale up to $300.0 million of any combination of its common stock, preferred stock, debt securities, warrants, rights and/or units from time to time and at prices and on terms that the company may determine, including up to $75.0 million of its common stock available for issuance pursuant to a Controlled Equity Offering Sales Agreement (the Sales Agreement) with Cantor Fitzgerald & Co. (Cantor).
Worse than expected
13 May 2025 4:15 PM
Quarterly Report
- The company's net loss increased compared to the same period last year.
- There is substantial doubt about the company's ability to continue as a going concern.
- The company received a Nasdaq deficiency letter due to its stock price falling below $1.00.
Worse than expected
27 March 2025 5:19 PM
Earnings Release and Business Update
- The company reported a net loss of $(20.9) million for Q4 2024 compared to a net income of $51.2 million for Q4 2023.
- Total revenue for Q4 2024 was $15.0 million, compared with total revenue of $73.5 million for the fourth quarter of 2023.
- The company discontinued the SPR206 program following a pipeline review in Q1 2025.
Worse than expected
27 March 2025 4:30 PM
Annual Results
- The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
- The company has suspended development of SPR720 and discontinued SPR206.
- The company is subject to an SEC investigation regarding certain public disclosures made in 2022.
Capital raise
27 March 2025 4:30 PM
Annual Results
- Spero expects to need additional funding beyond the second quarter of 2026.
- The company expects that additional funding will primarily consist of raising additional capital through some combination of equity or debt financings, potential new collaborations or additional grant funding.
Worse than expected
28 February 2025 5:11 PM
8-K Filing
- The company's stock price falling below the Nasdaq minimum bid price requirement is worse than expected.
Worse than expected
10 January 2025 7:00 AM
Corporate Update
- The company is facing an SEC investigation, which is a negative development.
- The company has made interim leadership changes, which can create uncertainty.
- The company has suspended development of SPR720 after a Phase 2a trial did not meet its primary endpoint and showed potential safety issues.
Worse than expected
14 November 2024 4:05 PM
Quarterly Report
- The company reported a significantly larger net loss in Q3 2024 compared to Q3 2023.
- The company's revenue decreased substantially in Q3 2024 compared to Q3 2023.
- The company suspended the development of SPR720 after a Phase 2a trial failed to meet its primary endpoint.
Capital raise
14 November 2024 4:02 PM
Quarterly Report
- The company expects to need additional funding beyond mid-2026, which will primarily consist of raising additional capital through some combination of equity or debt financings, potential new collaborations, additional grant funding and/or reducing cash expenditures.
- The company has a universal shelf registration statement on Form S-3, which allows it to sell up to $300 million of securities, including up to $75 million of common stock through an at-the-market offering program.
Delay expected
14 November 2024 4:02 PM
Quarterly Report
- The suspension of the SPR720 program will delay the development of a potential treatment for NTM-PD.
Worse than expected
14 November 2024 4:02 PM
Quarterly Report
- The company suspended the development of SPR720 due to the Phase 2a trial not meeting its primary endpoint and potential safety issues.
Worse than expected
29 October 2024 5:01 PM
Business Update
- The Phase 2a trial of SPR720 failed to meet its primary endpoint, leading to the suspension of the program.
- The company is undergoing a restructuring and workforce reduction due to the disappointing trial results.
Capital raise
5 August 2024 4:18 PM
Quarterly Report
- The company expects to need additional funding beyond late 2025, which will primarily consist of raising additional capital through some combination of equity or debt financings, potential new collaborations, or additional grant funding.
- The company has a universal shelf registration statement on Form S-3, which allows for the sale of up to $300 million of securities, including common stock.
Worse than expected
5 August 2024 4:18 PM
Quarterly Report
- The company reported a net loss of $30.5 million for the first half of 2024, indicating ongoing financial challenges.
Worse than expected
5 August 2024 4:13 PM
Quarterly Report
- The company's net loss increased significantly compared to the same quarter last year, indicating worse than expected financial performance.
Worse than expected
15 May 2024 4:02 PM
Quarterly Report
- The company reported a net loss of $12.7 million, which is a significant loss for the quarter, although slightly better than the $13.3 million loss in the same period last year.
Capital raise
15 May 2024 4:02 PM
Quarterly Report
- The company expects to need additional funding beyond late 2025, which they anticipate will primarily consist of raising additional capital through some combination of equity or debt financings, potential new collaborations or additional grant funding.
- Spero has filed a new universal shelf registration statement on Form S-3 with the SEC, registering for sale up to $300.0 million of any combination of its common stock, preferred stock, debt securities, warrants, rights and/or units.
Better than expected
13 March 2024 4:07 PM
Annual Results
- The company reported a net income of $22.8 million for 2023, a significant improvement from the $46.4 million loss in 2022.
- Revenue increased substantially to $103.8 million in 2023, compared to $53.5 million in 2022.
- The company's cash runway is expected to extend into late 2025, providing financial stability.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.