SIOUX FALLS, S.D. - SAB Biotherapeutics, Inc. (NASDAQ:SABS), a clinical-stage biopharmaceutical company, announced today that it has successfully regained compliance with Nasdaq's minimum bid price requirement.
The company, which specializes in developing human immunoglobulins for treating type 1 diabetes, had previously been notified of non-compliance due to its shares falling below the $1.00 minimum bid price for 30 consecutive business days.
To address the issue, SAB Biotherapeutics executed a 1-for-10 reverse stock split on January 5, 2024. This strategic move was aimed at boosting the company's share price above the Nasdaq threshold. As a result, the company's common shares maintained a closing bid price of $1.00 or more for at least 10 consecutive business days, meeting the requirement set by Nasdaq on January 23, 2024.
SAB Biotherapeutics is known for its novel immunotherapy platform, which includes a lead asset, SAB-142, targeting type 1 diabetes with a therapeutic approach designed to delay onset and potentially prevent disease progression.
InvestingPro Insights
In light of SAB Biotherapeutics' recent strides to regain Nasdaq compliance, it's important for investors to consider the broader financial context of the company. According to InvestingPro data, SAB Biotherapeutics currently holds a market capitalization of $55.08 million. However, the company has been grappling with significant challenges, as evidenced by a negative price-to-earnings (P/E) ratio of -1.08 and an adjusted P/E ratio for the last twelve months as of Q3 2023 at -2.06. This reflects broader concerns about profitability, particularly as the company has not been profitable over the last twelve months.
InvestingPro Tips suggest that the stock is currently in oversold territory, indicating that it may be undervalued by the market. Despite this, analysts are expecting a sales decline in the current year, and the company is quickly burning through cash, which could pose risks to investors. With gross profit margins in negative territory and an expectation of net income dropping this year, the financial outlook remains cautious. Moreover, the company's short term obligations exceed its liquid assets, further emphasizing the need for careful financial management.
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