RedHill Biopharma appeals Nasdaq delisting notice

RedHill Biopharma Ltd. (NASDAQ: RDHL) received a staff determination notification from Nasdaq on October 16 regarding continued non-compliance with minimum stockholders' equity requirements for listing.

The specialty biopharmaceutical company failed to meet the $2.5 million minimum stockholders' equity requirement by the October 13 compliance deadline, according to Nasdaq Listing Rule 5550(b)(1). Nasdaq initially notified RedHill of the non-compliance on April 17 and granted an extension until October 13.

RedHill plans to appeal the determination to a Nasdaq Listing Qualifications Panel, which has authority to determine compliance or grant up to a 180-day extension. The hearing request will stay any delisting or suspension action, allowing the company's American Depositary Shares to remain listed and traded on the Nasdaq Capital Market pending the panel's decision.

The company stated that following its transaction with Cumberland Pharmaceuticals Inc., announced October 20, it believes its stockholders' equity now exceeds the minimum $2.5 million requirement. RedHill noted it cannot provide assurance that the panel will grant an extension or rule favorably.

RedHill focuses on development and commercialization of drugs for gastrointestinal diseases, infectious diseases and oncology. The company promotes FDA-approved gastrointestinal drug Talicia for treatment of Helicobacter pylori infection in adults.

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