DELMAR PHARMACEUTICALS, INC. (NASDAQ:DMPI) Files An 8-K Other Events
Item 8.01. Other Events.
On June 13, 2019, DelMar Pharmaceuticals, Inc. (the “Company”) received written notice from the Nasdaq Hearings Panel of The Nasdaq Stock Market (the “Nasdaq Hearings Panel”) informing the Company that, taking into consideration the Company’s registered direct offering of shares of its common stock and concurrent private placement of warrants to purchase common stock (collectively, the “RD Offering”) that was consummated on June 5, 2019, resulting in gross proceeds of $3.6 million, and the Company’s pending rights offering, the Nasdaq Hearings Panel granted the Company’s request for continued listing, subject to the condition that on or before October 15, 2019, the Company shall have issued public disclosure on Form 8-K that it has over $2.5 million in stockholders’ equity and demonstrate compliance with all other requirements for continued listing.
As previously disclosed, on May 22, 2019 and May 23, 2019 the Company received written notices (collectively, the “Notice”) from the Listing Qualifications Department of Nasdaq indicating that, in light of the Company having reported stockholders’ equity of $1,259,161 as of March 31, 2019 in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, the Company was not in compliance with the $2,500,000 minimum stockholders’ equity requirement set forth in Nasdaq Listing Rule 5550(b)(1) for continued listing on The Nasdaq Capital Market (the “Stockholder’s Equity Requirement”), or with any alternative standard under the Nasdaq Listing Rules. The Notice requested that the Company present a plan to regain compliance with the above-mentioned deficiency by written submission no later than May 29, 2019, which the Company submitted within such time period, in order to be considered by the Nasdaq Hearings Panel that was, until May 23, 2019, considering the Company’s continued listing due to the Company’s previously cured deficiency with respect to the $1.00 per share bid price requirement, as previously disclosed.
On April 18, 2019, the Company filed a registration statement in connection with a proposed rights offering for its stockholders to subscribe for shares of the Company’s preferred stock and accompanying warrants to purchase shares of the Company’s common stock, which registration statement was last amended on June 10, 2019. The Company expects to utilize the proceeds from the rights offering and the RD Offering towards establishing compliance with the Stockholder’s Equity Requirement; provided that the Company will need to raise additional capital to obtain compliance.
There can be no assurance that the Company will be successful in meeting the Nasdaq Hearings Panel’s conditions, or that the Company will be successful in regaining compliance with all applicable requirements for continued listing on The Nasdaq Capital Market. The delisting of the Company’s common stock from a national exchange could materially adversely affect the Company’s access to capital markets, and any limitation on market liquidity or reduction in the price of the common stock as a result of that delisting could adversely affect the Company’s ability to raise capital on terms acceptable to the Company, or at all.
About DELMAR PHARMACEUTICALS, INC. (NASDAQ:DMPI)
DelMar Pharmaceuticals, Inc. is a clinical-stage drug development company. The Company focuses on the treatment of cancer. The Company is engaged in conducting clinical trials in the United States with its product candidate, VAL-083, as a treatment for glioblastoma multiforme (GBM), a form of brain cancer. VAL-083 is being evaluated in a Phase II clinical trial for the treatment of refractory GBM. In addition to its clinical development activities in the United States, the Company has obtained certain commercial rights to VAL-083 in China where it is approved as a chemotherapy for the treatment of chronic myelogenous leukemia (CML) and lung cancer. Its drug discovery research focuses on identifying validated clinical and commercial-stage compounds, and establishing a scientific rationale for development in orphan drug indications. VAL-083 is an alkylating agent, which crosses the blood-brain-barrier (BBB).
