Cyclo Therapeutics Receives Non-Compliance Notice from Nasdaq – 8-K Filing Highlights Issues with Bid Price and Equity

On October 4, 2024, Cyclo Therapeutics, Inc. (NASDAQ: CYTH) disclosed in an 8-K filing that it has been notified by The Nasdaq Stock Market regarding non-compliance with certain listing rules. The letters received from Nasdaq indicated several areas where the Company was not meeting the requirements set forth by the exchange.

Firstly, the Company was found in violation of Nasdaq Listing Rule 5550(a)(2) for failing to maintain a closing bid price of at least $1.00 per share for 30 consecutive trading days. Furthermore, the stockholders’ equity of Cyclo Therapeutics was reported to be below the minimum threshold of $2.5 million, as per Nasdaq Listing Rule 5550(b)(1).

Additional non-compliance issues highlighted in the letter included the Company’s failure to meet the minimum Market Value of Listed Securities of $35 million (Nasdaq Listing Rule 5550(b)(2)), as well as falling short of the requirement to maintain net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recent fiscal years (Nasdaq Listing Rule 5550(b)(3)).

According to Nasdaq Listing Rules, Cyclo Therapeutics now has a 180-day period, which expires on April 2, 2025, to rectify the non-compliance issues and regain compliance. If compliance with Nasdaq Listing Rule 5550(a)(2) is not achieved within the specified timeline, the Company may be eligible for an additional 180-calendar day compliance period, subject to certain conditions. However, failing to meet the requirements of Nasdaq Listing Rule 5550(b)(2) could result in a notification of delisting of the Company’s securities.

Cyclo Therapeutics, based in Gainesville, Florida, is now tasked with addressing these non-compliance issues within the designated time frames to maintain its listing on The Nasdaq Stock Market. The Company’s strategic and operational responses moving forward will be closely monitored by stakeholders and investors alike.

The report was signed by N. Scott Fine, Chief Executive Officer of Cyclo Therapeutics, on October 9, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cyclo Therapeutics’s 8K filing here.

Cyclo Therapeutics Company Profile

Cyclo Therapeutics, Inc, a clinical stage biotechnology company, engages in the development of cyclodextrin-based products for the treatment of neurodegenerative diseases. The company's lead drug candidate is Trappsol Cyclo (hydroxypropyl beta cyclodextrin), an orphan drug, which is in Phase III clinical trials for the treatment of Niemann-Pick Type C disease; and in Phase IIb clinical trials for the treatment of Alzheimer's disease.