In a recent development, Nektar Therapeutics (NASDAQ:NKTR) announced it has regained compliance with Nasdaq's minimum bid price requirement, securing its continued listing on the Nasdaq Capital Market. This achievement follows a period of financial scrutiny after the company's stock failed to maintain the required $1.00 per share minimum closing bid price for 30 consecutive business days.
On May 26, 2023, Nektar first received notice of noncompliance from Nasdaq's Listing Qualifications Department. The company was initially given 180 days, until November 22, 2023, to meet the bid price requirement. Subsequently, on November 24, 2023, Nektar was granted an additional 180-day compliance period, extending the deadline to May 20, 2024.
In a bid to regain compliance, Nektar's common stock was transferred from the Nasdaq Global Select Market to the Nasdaq Capital Market as the business opened on November 28, 2023. The change in markets is a strategic move that often allows companies more time to comply with listing standards.
The company's efforts proved successful, and on April 17, 2024, Nektar received a letter from Nasdaq confirming that it had satisfied the bid price condition. This was achieved after the company's common stock maintained a closing bid price of $1.00 per share or greater for a minimum of 10 consecutive business days, culminating on April 16, 2024.
The return to compliance is a positive step for Nektar, as it removes the immediate risk of delisting from the Nasdaq Capital Market. This status is crucial for the company's ability to attract investors and maintain its stock's liquidity.
The information regarding Nektar's compliance status is based on the company's latest 8K filing with the Securities and Exchange Commission. It is important to note that while Nektar has overcome this particular hurdle, the company's financial performance and stock price will continue to be monitored under Nasdaq's listing rules.
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