MDNA stock hammered on Nasdaq delisting

Shares of Medicenna (Medicenna Stock Quote, Chart, News, Analysts, Financials TSX:MDNA) are taking it on the chin this morning after the company announced it had Staff Delisting Determination from the Listing Qualifications Department of the Nasdaq and would not appeal the decision.

“To better position Medicenna for the benefit of all our shareholders, we undertook a thorough and thoughtful review of our cost structure, including costs associated with being a Nasdaq-listed company,” said CEO Fahar Merchant. “Our Board of Directors concluded that within the context of the current biotech markets, the Company and its stockholders do not benefit from a Nasdaq listing considering the associated significant costs and resources required. We remain in good standing with our TSX listing, have no debt and have sufficient cash to potentially fund the company well beyond key value inflection milestones from the MDNA11 Phase 2 monotherapy and combination trial. We look forward to sharing additional new data at major conferences next month for the MDNA11, BiSKITs and bizaxofusp programs.”

Nasdaq Listing Rule 5550(a)(2) mandates that a company’s common stock must maintain a minimum closing bid price of $1.00 per share to remain listed on the Nasdaq stock exchange. If a company’s stock closes below the $1.00 minimum bid price for 30 consecutive business days, it will receive a deficiency notice from Nasdaq.

Along with the delisting news, MDNA also announced the departure of CFO Jeff Caravella and Brent Meadows, who was Chief Business Officer.

At press time, shares of MDNA were down 28.4 per cent to $0.24.