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
-
0

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 Continued Listing Rule or Standard; Transfer of Listing.

On May 19, 2017, Onconova Therapeutics, Inc. (the “Company”) received a letter from NASDAQ notifying the Company that it is no longer in compliance with the minimum stockholders’ equity requirement for continued listing on the NASDAQ Capital Market. NASDAQ Listing Rule 5550(b)(1) requires listed companies to maintain stockholders’ equity of at least $2.5 million. In the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 (the “Report”), the Company reported stockholders’ deficit of approximately $2.7 million, which is below the minimum stockholders’ equity required for continued listing to NASDAQ Listing Rule 5550(b)(1).

In the Subsequent Events footnote in the Report, the Company also reported two events subsequent to March 31, 2017 which increase stockholders equity by approximately $6.6 million. On April 26, 2017, the Company closed an underwritten offering, which resulted in the issuance of 2,476,190 shares of common stock and net proceeds of approximately $4.6 million.  In addition, subsequent to March 31, 2017, there was a decrease in the fair value of the Company’s warrant liability.  The fair value at March 31, 2017 was $4,950,000. The estimated fair value at May 15, 2017 was approximately $2,900,000. The estimated decrease would reduce the Company’s net loss by approximately $2,000,000. The closing of the offering and the change in fair value of the Company’s warrant liability have allowed the Company to regain compliance with NASDAQ’S stockholders’ equity requirement for continued listing after falling out of compliance based on the Company’s balance sheet dated March 31, 2017 included in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.  Since the Company has regained compliance, it is not required to submit a plan to NASDAQ to regain compliance. As of the date of this filing, the Company believes it complies with the stockholders’ equity requirement. NASDAQ will continue to monitor the Company’s ongoing compliance with the stockholders’ equity requirement.


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.

Onconova Therapeutics, Inc. (NASDAQ:ONTX) Recent Trading Information

Onconova Therapeutics, Inc. (NASDAQ:ONTX) closed its last trading session down -0.02 at 2.00 with 38,587 shares trading hands.