Matinas BioPharma gets NYSE American deficiency notice for missing 2024 annual meeting

Matinas BioPharma Holdings, Inc. (NYSE American: MTNB) received a deficiency letter from NYSE American LLC on January 6, 2025, because it did not hold an annual meeting of stockholders during its fiscal year ended December 31, 2024. The company reported the notice in a Form 8-K filed January 10, 2025 under Item 3.01. A deficiency letter is an exchange's written notice that a listed company has fallen below one of its continued listing standards. The company says it intends to hold its annual meeting no later than December 31, 2025 to regain compliance. Chief Executive Officer Jerome D. Jabbour signed the filing.

What the NYSE American notice says

The letter says Matinas failed to hold the annual meeting required by Section 704 of the NYSE American Company Guide. The company's press release, titled "Matinas BioPharma Receives NYSE Noncompliance Notice" and dated January 10, 2025, says the company has fallen below certain NYSE American continued listing standards for the same reason.

The 8-K says the notice has no immediate impact on the listing of the company's common stock. The shares will continue to be listed and traded on NYSE American during the applicable cure period. The exchange will assign a ".BC" indicator to the company, which signals that it is below compliance, and the indicator will be removed once the company is deemed compliant with the continued listing standards.

The company's plan to regain compliance

Matinas says it intends to hold its annual meeting no later than December 31, 2025, in order to regain compliance under the Company Guide. The press release states the same plan in the same words.

Risks named in the forward-looking statements

The forward-looking statements in the 8-K and the press release list several risks and uncertainties. They include the sale of MAT 2203 and the evaluation of other alternatives for the company, including a winddown or dissolution. Both documents also say that Matinas's product candidates are all in a development stage and are not available for sale or use.

About Matinas

In its annual report on Form 10-K filed March 27, 2024, which covers fiscal 2023, Matinas describes itself as a clinical-stage biopharmaceutical company that uses its lipid nanocrystal (LNC) platform delivery technology. The platform encapsulates small molecules and small oligonucleotides to deliver them to targeted cells and tissues. Certain related patents are exclusively licensed to the company by Rutgers University.

The 10-K identifies MAT2203, an oral amphotericin B, as its lead product candidate. After the EnACT Phase 2 trial in cryptococcal meningitis, the company said MAT2203 was positioned for a single Phase 3 registration trial, called ORALTO, in support of a New Drug Application for invasive aspergillosis in patients with limited treatment options. The report says the company will need to complete a partnership transaction or raise additional capital before it starts the ORALTO trial.

The auditor's report in the same 10-K includes a going concern paragraph. It says the company has recurring net losses and net cash flow used in operations that raise substantial doubt about its ability to continue as a going concern. The 10-K reports, in thousands of dollars, cash and cash equivalents of $4,787, marketable debt securities of $8,969 and restricted cash of $250 at December 31, 2023, and says the company does not believe these are enough to fund planned operations beyond the next twelve months from the filing date. Elsewhere the 10-K says the company expects to finance its cash needs through private and public equity offerings, debt financings, government or other third-party funding, collaborations and licensing arrangements, and that these financing alternatives may not be available on acceptable terms, or at all.

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