Medicenna Therapeutics Corp. (NASDAQ, TSX: MDNA) and PyroGenesis Canada Inc., both Canadian companies, have announced their decisions to voluntarily delist from the Nasdaq Stock Market.
On Friday, Medicenna Therapeutics, a Toronto and Houston-based clinical-stage immunotherapy company specializing in engineered cytokines development, received a Staff Delisting Determination from Nasdaq due to failure to comply with the US$1.00 per share minimum bid price requirement. The company's CEO Fahar Merchant said the decision aims to better position Medicenna for its shareholders considering the costs and resources needed for a Nasdaq listing. The board of directors deemed that delisting is beneficial due to factors like the life science sector market volatility and regulatory burdens. They anticipate significant savings from this decision and plan to trade common shares on the OTC Markets post-Nasdaq delisting. Trading of Medicenna's common shares on Nasdaq will be suspended from November 2, 2023.
In connection with the delisting, Medicenna's board decided to reduce its management team and US presence, leading to CFO Jeff Caravella and Chief Business Officer Brent Meadows' departure. A search for a new TSX-familiar CFO is underway. Simultaneously, Medicenna is focusing on key milestones from the MDNA11 Phase 2 monotherapy and combination trial and plans to share new data for the MDNA11, BiSKITs, and bizaxofusp programs.
Similarly, PyroGenesis Canada Inc., a firm committed to developing plasma processes and sustainable solutions for mitigating greenhouse gases, has opted for voluntary delisting of its common shares from Nasdaq. Despite receiving a 180-day extension in May 2023 to meet Nasdaq's minimum closing bid price requirement of US$1.00 per share, the company chose to delist due to the escalating costs, exceeding $2 million annually, associated with maintaining its Nasdaq listing. These costs are projected to rise due to increasing regulatory requirements. The company's CEO Mr. P Peter Pascali emphasized that this decision prioritizes shareholders' best interest. PyroGenesis has initiated the Nasdaq delisting process and plans to file a Form 25 with the SEC for its shares' removal from Nasdaq's listing. However, the shares will persist on the Toronto Stock Exchange (TSX) and are being prepared for quoting on the OTCQX Best Market.
These decisions by Medicenna and PyroGenesis underscore the increasing costs and regulatory burdens associated with maintaining a Nasdaq listing, especially for international companies. The implications of these delistings on future operations and the market presence of both firms will be closely watched by investors and market analysts.
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