The Nasdaq stock market has notified Durham drug developer Heat Biologics Inc. that it is in danger of having its stock delisted from trading unless it raises its share price above $1 per share.
The notification comes after Heat Biologics failed to maintain a minimum closing price of $1 per share for the 30 consecutive business days between Jan. 31 and March 14, according to a Securities and Exchange Commission filing released on Thursday. The Nasdaq requires all companies listed on its market to maintain a minimum bid price of at least $1 per share.
Heat Biologics, which is focused on the field of cancer immunotherapy, has until Sept. 11 to get its share price to $1 per share. If it has not reached the threshold of $1 per share by that date, it can ask for an extension.
Shares of the biotech company closed trading Thursday at 95 cents per share, which was up 4.2 percent on the previous day. The company’s shares haven’t closed at $1 since Feb. 1.
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“The company intends to actively monitor the bid price of its common stock and will consider available options to regain compliance with the Nasdaq listing requirements, including such actions as effecting a reverse stock split to maintain its Nasdaq listing,” it said in the filing.
Heat Biologics, which was founded in 2008, is developing cancer vaccines for lung and bladder cancer.
The company announced this week that its experimental lung cancer vaccine had posted good enough trial results to advance to phase 2 trials — though results posted last December for its bladder cancer vaccine’s phase 2 trials were negative and resulted in the company’s stock price to plummet 60 percent in one day.
Last week, the company announced it acquired a controlling interest in the Austin, Texas-based biotech company Pelican Therapeutics in a deal valued at around $1.5 million. That acquisition is expected to close on April 30.