RAANANA, Israel - Polyrizon Ltd. (NASDAQ:PLRZ), a biotech firm in the development stage currently trading at $0.01 with a market capitalization of just $30,000, has been notified by the Nasdaq Stock Market of potential delisting due to actions that have caused significant dilution of its shareholders. According to InvestingPro data, the company’s stock has experienced a dramatic decline, losing nearly 100% of its value year-to-date. The Nasdaq’s Listing Qualifications Department, after reviewing the company’s filings with the Securities and Exchange Commission (SEC), has exercised its discretionary authority under Listing Rule 5101 to propose the delisting.
The contentious issue stems from Polyrizon’s issuance of securities under a securities purchase agreement dated March 31, 2025, which included Series A warrants exercisable on an alternate cashless basis. Nasdaq staff have raised public interest concerns over the resultant substantial dilution for shareholders. The stock’s poor performance is evident in its 99.55% decline over the past six months, as tracked by InvestingPro. However, the notification does not immediately affect the trading of Polyrizon’s shares on the Nasdaq Capital Market.
Polyrizon intends to request a hearing before a Hearings Panel to appeal the decision, which will stay any suspension or delisting action until the hearing’s conclusion and any subsequent extension period granted by the Panel.
Polyrizon specializes in creating nasal spray hydrogels that form a barrier in the nasal cavity against viruses and allergens. Its proprietary Capture and Contain™ technology aims to act as a biological mask with a containment barrier. While the company maintains a strong liquidity position with a current ratio of 10.16, InvestingPro analysis indicates weak overall financial health with significant profitability challenges. The company is also working on delivering active pharmaceutical ingredients nasally with its Trap and Target™ technology, which is still in pre-clinical development.
The forward-looking statements included in the company’s press release indicate Polyrizon’s intent to remain listed on Nasdaq and to address the delisting determination successfully. However, they also acknowledge the inherent uncertainties in such projections and the risks detailed in their SEC filings. Subscribers to InvestingPro can access 13 additional key insights about Polyrizon’s financial health, valuation metrics, and future prospects to make more informed investment decisions.
The information in this article is based on a press release statement from Polyrizon Ltd.
In other recent news, Polyrizon Ltd. has initiated preclinical studies for a new intranasal delivery method of Benzodiazepines aimed at treating acute repetitive seizures and status epilepticus. This development is part of their Trap and Target™ platform and is being conducted in collaboration with the University of Parma. Additionally, Polyrizon has reported successful preliminary safety results for its PL-14 Allergy Blocker, a mucoadhesive nasal gel spray designed to act as a barrier against airborne allergens. The company is advancing its regulatory strategy, with clinical trials anticipated in the U.S. and Europe by late 2025 or early 2026.
Furthermore, Polyrizon has announced a partnership with a leading branding and trademark consultancy to establish a brand identity for its Capture and Contain™ hydrogel technology. This move aligns with their clinical and regulatory milestones as they work towards commercializing their technology. In financial developments, Polyrizon has secured approximately $17 million through a private placement, with Aegis Capital Corp. acting as the exclusive placement agent. The funds are intended for general corporate purposes and working capital, with the securities offered exclusively to accredited investors. These recent developments underscore Polyrizon’s ongoing efforts in advancing their innovative hydrogel technologies.
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