Onconova Therapeutics,Inc. (NASDAQ:ONTX) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

ME Staff 8-k
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Onconova Therapeutics,Inc. (NASDAQ:ONTX) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01. Notice of Delisting or Failure to Satisfy a Continuing Listing Ruleor Standard; Transfer of Listing.

On November14, 2017, Onconova Therapeutics,Inc. (the “Company”) received a letter from the Nasdaq Staff stating that the Company had not been able to regain compliance with Nasdaq’s $2.5 million minimum stockholders’ equity requirement (the “Stockholders’ Equity Requirement”), and that the Staff had determined to seek to delist the Company’s securities from Nasdaq unless the Company requests a hearing before a Nasdaq Hearings Panel (the “Panel”).

Accordingly, the Company intends to request a hearing before a Panel, which has the authority to grant the Company an additional extension of time of up to 180 calendar days from November14, 2017 to regain compliance. The hearing request will stay any suspension or delisting action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing. The Company is working with its advisors to prepare a plan of compliance to be reviewed with the Panel.

The Company is required to meet certain qualitative and financial tests to maintain the listing of the Company’s securities on The Nasdaq Capital Market. As previously disclosed, as of March31, 2017, June30, 2017 and September30, 2017, the Company’s total stockholders’ equity was $(2.7) million, $0.4 million and $(6.1) million, respectively. As a result, the Company did not comply with the Stockholders’ Equity Requirement, nor the alternative compliance standards under Nasdaq Listing Rule5550(b)for the continued listing of the Company’s securities on The Nasdaq Capital Market. On May19, 2017, the Company received a letter (the “MayLetter”) from the Nasdaq Staff notifying the Company of its noncompliance with the Stockholders’ Equity Requirement. The MayLetter indicated that the Nasdaq Staff may grant an extension up to 180 calendar days from the date of the MayLetter, or until November15, 2017, for the Company to regain compliance. However, due to the completion of the Company’s April2017 underwritten public offering of the Company’s common stock and a change in the fair value of a warrant liability, the Company regained compliance with the Stockholders’ Equity Requirement. On August16, 2017, the Company received a second letter from the Nasdaq Staff notifying the Company of its noncompliance with the Stockholders’ Equity Requirement and providing the Company with 45 days to submit a plan of compliance, which the Company submitted on October2, 2017, and, updated on October31, 2017 and November10, 2017.

If the Company’s securities are delisted, it could be more difficult to buy or sell the Company’s securities and to obtain accurate quotations, and the price of the Company’s securities could suffer a material decline. Delisting could also impair the Company’s ability to raise capital.


About Onconova Therapeutics,Inc. (NASDAQ:ONTX)

Onconova Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company operates through the identification and development of oncology therapeutics segment. It is focused on discovering and developing small molecule drug candidates to treat cancer. The Company has created a targeted anti-cancer agents designed to work against specific cellular pathways that are important to cancer cells. It has over three clinical-stage product candidates and various preclinical programs that target kinases, cellular metabolism or cell division in preclinical development. The Company’s lead product candidate, rigosertib, is being tested in both intravenous (IV) and oral formulations as a single agent, and the oral formulation is also being tested in combination with azacitidine, in clinical trials for patients with myelodysplastic syndromes (MDS), and related cancers. Its other product candidates include Briciclib and Recilisib.