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Humanigen (NASDAQ:HGEN) stock is heading lower on Monday as investors react to a delisting notice from the Nasdaq Exchange.
According to a filing with the U.S. Securities and Exchange Commission (SEC), HGEN stock has been unable to maintain the minimum bid price of $1 per share to remain on the market. This notice only triggers if the stock has failed to stay above the minimum for a period of 30 business days.
This has the Nasdaq giving Humanigen 180 days to regain compliance with the minimum bid price. That means it has until Feb. 20, 2023, to get the price of its stock back above the $1 threshold.
But there's more to it than just that. The stock has to close out trading for 10 consecutive days above the minimum bid price to regain listing compliance. If it does so, the Nasdaq will close the case.
However, if HGEN stock can get back above $1 per share before Feb. 20, 2023, then not all hope is lost. The company can request an additional 180 days to regain compliance, which would buy it extra time before the delisting goes through.
How Did HGEN Stock Fall Below $1?
The problems for HGEN stock started when the company reported topline data from a Covid-10 trial last month. The results from that clinical trial showed lenzilumab plus remdesivir had no significant effect on hospitalized patients with Covid-19. This saw HGEN shares drop from $2.99 to 61 cents in a single day of trading.
HGEN stock is down 16.2% in pre-market trading on Monday.
There's more recent stock market news for traders to jump into below!
InvestorPlace has all of the hottest stock news worth knowing about on Monday! A few examples include Clarus Therapeutics (NASDAQ:CRXT) stock falling on delisting news, short squeeze stocks to watch this week, as well as Mind Medicine (NASDAQ:MNMD) stock dropping after a reverse split. You can get up to speed on all of this news at the following links!
More Monday Stock Market News
- Clarus Therapeutics (CRXT) Stock Plunges Ahead of Aug. 31 Delisting
- FAZE, PETZ: The Top 5 Short Squeeze Stocks to Watch This Week
- MindMed (MNMD) Stock Falls After Reverse Stock Split
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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