Rallybio, a New Haven-based biotechnology firm, notified federal regulators this week that it faces delisting from the Nasdaq Stock Market.
On Tuesday, the company filed a notice with the U.S. Securities and Exchange Commission that it had received a letter from the Nasdaq listing qualifications department stating the closing bid price for Rallybio’s common stock was below the minimum $1 per share during the previous 30 consecutive business days required by the market’s rules.
While the stock continues to be listed and trade on the market, Rallybio has 180 days, or until Aug. 25, to “cure the deficiency and regain compliance with the minimum bid notice,” the letter from Nasdaq states.
To regain compliance, the stock’s closing bid price must be at least $1 per share for a minimum of 10 consecutive business days.
Rallybio said it intends to monitor the closing bid price and “explore available options to regain compliance within the prescribed time period.”
The company said it may be eligible for an additional 180-day period to regain compliance if it applies to transfer the listing of its common stock to the Nasdaq Capital Market.
To qualify for the extension, Rallybio must meet the continued listing requirement for market value of publicly held shares and all other initial listing standards, with the exception of the bid price requirement, and provide written notice to Nasdaq of its intention to “cure the deficiency during the second compliance period.”
If Rallybio’s stock fails to regain compliance or transfer to the Nasdaq Capital Market before the compliance date, the company will receive a notice from Nasdaq that its common stock would be subject to delisting.
Rallybio said it could appeal that decision to a Nasdaq hearings panel.
On Thursday, Rallybio’s stock, which trades under the symbol RLYB, opened at 73 cents per share, above its 52-week low of 68 cents per share, but well below its 52-week high of $3.46 per share.
In November, Rallybio released its third-quarter earnings report, posting a smaller net loss while producing revenue for the first time, in part due to significant job cuts.
The company, based at 234 Church St, in New Haven, reported a third quarter net loss of $11.5 million, or 26 cents per share, down from a net loss of $18.4 million, or 45 cents per share, for the same quarter last year.
For the first nine months of 2024, Rallybio reported a net loss of $46.7 million, or $1.08 per share, down from a net loss of $54.3 million, or $1.35 per share, a year earlier.
The company, which is developing therapies to address rare diseases in the areas of hematology, immuno-inflammation, maternal fetal health, ophthalmology and metabolic disorders, announced plans in February 2024 to cut 45% of its then-43-member workforce, or about 19 people. The cuts were expected to be completed by March 31.
