aibioRallybio gets Nasdaq minimum bid price notice, has until August 25, 2025
Tickers RLYB
Rallybio's closing bid price was below $1.00 for 30 consecutive business days. It may be eligible for another 180-day period if it applies to move its listing to the Nasdaq Capital Market.
Key facts
- Company
- Rallybio Corporation (NASDAQ: RLYB)
- News type
- Listings
- Primary source
- Rallybio Corp Form 8-K filed February 25, 2025 (SEC EDGAR)
Rallybio Corporation (Nasdaq: RLYB) received a Nasdaq deficiency notice because its closing bid price had been below $1.00 per share for 30 consecutive business days. The company disclosed the notice in a Form 8-K filed February 25, 2025. It has until August 25, 2025 to regain compliance with the Nasdaq minimum bid price requirement, and more time may be available under the rules.
What the filing says
Rallybio received a notification letter on February 24, 2025 from the Nasdaq Listing Qualifications Department. The letter said the closing bid price of the common stock had been below the $1.00 minimum for the last 30 consecutive business days, as required for continued listing under Nasdaq Listing Rule 5450(a)(1).
The company says the notice has no immediate impact on the listing. The shares will keep trading on Nasdaq, as long as the company meets the other listing requirements. Rallybio says it intends to monitor its closing bid price and to explore options to regain compliance within the prescribed period.
The deadline and how to cure it
Under Nasdaq Listing Rule 5810(c)(3)(A), the company has 180 calendar days, or until August 25, 2025, which the filing calls the Compliance Date. To regain compliance, the closing bid price must be at least $1.00 per share for a minimum of 10 consecutive business days before that date.
If the company does not meet the test by the Compliance Date, it may be eligible for a second 180-day period, but only if it applies to transfer its listing to the Nasdaq Capital Market. To qualify, Rallybio would have to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards other than the bid price. It would also have to give Nasdaq written notice of its intention to cure the deficiency during that second period.
If the company neither regains compliance nor transfers before the Compliance Date, it will receive written notice from Nasdaq that its common stock is subject to delisting. The company says it could appeal that determination to a Nasdaq Hearings Panel.
The pipeline behind the stock
In its annual report on Form 10-K filed March 12, 2024, Rallybio describes itself as a clinical-stage biotechnology company focused on severe and rare diseases. The two programs it names as most advanced are RLYB212, an antibody for preventing fetal and neonatal alloimmune thrombocytopenia, and RLYB116, a complement component 5 inhibitor.
The annual report is blunt about the risk. It says the company is heavily dependent on the success of RLYB212 and RLYB116, which are in early-stage clinical development. It also says that if the company fails to obtain necessary financing, it may not be able to complete development and commercialization of either program. Raising more capital may dilute existing shareholders. The notice does not say why the price fell below the threshold. That 10-K is the last annual report in this record and is almost a year old: it shows a 2023 net loss of $74,564 thousand against $66,654 thousand for 2022, an accumulated deficit of $235.2 million and cash, cash equivalents and marketable securities of $109.9 million at December 31, 2023. The company said then that this would fund operations for more than 12 months and into the middle of 2026, but that it would need to raise substantial additional capital to complete development and commercialization of its candidates.
Who is involved
Jonathan I. Lieber, Chief Financial Officer and Treasurer, signed the 8-K. The 10-K, filed March 12, 2024, names Stephen Uden, M.D., as Chief Executive Officer and Martin W. Mackay, Ph.D., as Executive Chairman. Nasdaq's Listing Qualifications Department sent the letter.
What comes next
The first date is August 25, 2025, the Compliance Date. Before then, the stock has to close at or above $1.00 for 10 consecutive business days to clear the notice. If it does not, Rallybio has two routes: a transfer to the Nasdaq Capital Market with a second 180-day period, or a delisting notice and an appeal to the Hearings Panel. The 8-K does not say which route the company will take.