Gain Therapeutics faces delisting from Nasdaq due to market value deficits By Investing.com

BETHESDA, MD – Gain Therapeutics, Inc. (NASDAQ:GANX) has been notified by Nasdaq that it no longer meets the minimum market value of listed securities (MVLS) required for continued listing on the Nasdaq Global Market. The pharmaceutical company, which is focused on developing drugs for neurodegenerative diseases, received a deficiency notice on June 11, 2024 after its MVLS remained below $50 million from May 8, 2024 to July 10, 2024.

Despite the notice, Gain Therapeutics’ common stock will continue to trade on the Nasdaq Global Market under the symbol “GANX.” The company has until January 7, 2025 to regain compliance with the MVLS requirements. To do so, the company’s MVLS must close at $50 million or more for at least ten consecutive business days during the compliance period.

If Gain Therapeutics fails to meet the MVLS requirement by the compliance date, its securities risk being delisted from Nasdaq. However, the company would have the right to appeal a delisting decision. Another option for Gain Therapeutics could be to apply for a transfer to the Nasdaq Capital Market, which has different listing requirements.

The Company actively monitors its MVLS and is committed to taking reasonable steps to restore compliance with Nasdaq listing standards. Nevertheless, there is no assurance that Gain Therapeutics will be able to restore or maintain compliance with Nasdaq listing rules.

This situation has arisen amid the wider challenges facing the pharmaceutical industry as companies strive to keep their financial metrics in line with market expectations. Gain Therapeutics has not made any further forward-looking statements or indications regarding its plans to resolve the compliance issue.

The information in this release and the Company’s current position is based on the most recent Form 8-K filed with the SEC. Investors and interested parties are advised to monitor Gain Therapeutics’ official filings and communications for further updates on this matter.

In other recent news, Gain Therapeutics has made significant progress in its Parkinson’s research. The biotechnology company announced positive results from a Phase 1 clinical trial for its lead drug candidate GT-02287, designed to treat Parkinson’s disease. The drug was well tolerated, and no serious side effects were reported in participants. In addition, GT-02287 demonstrated improvements in cognitive performance and activities of daily living in a preclinical study.

In company news, HC Wainwright adjusted its price target for Gain Therapeutics following a change in company leadership. Gene Mack, the company’s CFO, has assumed the role of interim CEO, while Khalid Islam, Ph.D., the founder and chairman of Gain Therapeutics, will provide additional support as executive chairman.

In addition, Gain Therapeutics announced its intention to offer and sell shares of its common stock in a public offering with Titan Partners Group acting as sole book-runner. Proceeds from the offering will be used, among other things, for the clinical and non-clinical development of GT-02287.

Finally, Gain Therapeutics has welcomed new members to its leadership team. Gene Mack has assumed the role of CFO and interim CEO, while Jonas Hannestad, MD, Ph.D., has been appointed Chief Medical Officer. Both bring extensive experience in their respective fields. These recent developments underscore Gain Therapeutics’ ongoing efforts to advance research and development of therapies for challenging diseases.

InvestingPro Insights

As Gain Therapeutics navigates the complex challenges of Nasdaq’s MVLS requirements, a closer look at some real-time data and InvestingPro tips can give investors a better financial perspective on the company’s current situation.

With a market cap of $34.48 million, Gain Therapeutics faces the challenge of growing that valuation to reach the threshold of the Nasdaq. The company’s recent performance shows a significant return in the last week with a total price return of 13.33%, possibly signaling short-term investor confidence. However, this must be balanced against a sharp decline of 69.51% over the past year and a year-to-date decline of 58.35%, reflecting continued pressure on the stock.

Tips from InvestingPro point out that while Gain Therapeutics holds more cash than debt, which is a positive sign for liquidity, the company is not expected to generate profits this year and analysts are concerned about rapid cash burn. In addition, the company’s gross profit margins remain weak, which could affect its ability to generate sufficient revenue to increase its market value. Given these factors, investors may find it wise to look at the company’s revenue growth potential in the current year as a glimmer of hope for a turnaround.

For those who want to dive deeper into the financial health of Gain Therapeutics, InvestingPro offers additional tips and comprehensive analysis. Use coupon code PRONEWS24 to receive up to 10% off a Pro annual subscription and a Pro+ annual or two-year subscription and access to numerous InvestingPro tips that can help you with your investment decisions.

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