Humanigen (NASDAQ:HGEN) stock is falling hard on Tuesday after the company warned investors it can’t keep listing requirements.
According to a filing from the company, it is no longer compliant with Nasdaq listing standards. This comes about after three of the company’s Board members resigned from the Board of Directors. As such, it doesn’t have the required independent directors to remain on the Nasdaq Exchange.
Humanigen says that due to this change, the company’s shares will be delisted from the Nasdaq Exchange on Wednesday. That will see the company’s stock switch over to the OTC Pink Market. It expects this switch to hamper its ability to raise additional capital and harm its liquidity.
What’s Behind The HGEN Stock Drama
Humanigen has been trying to find a buyer or raise additional funding as it explores strategic alternatives. While the company was in negotiations with a privately held biopharmaceutical company for a combination, no deal was made.
Here’s a portion of what it said in its recent filing.
“The Company anticipates that it will not be able to continue as a going concern and is exploring all restructuring options, which may include commencing a bankruptcy or other insolvency proceeding sometime in the third quarter of 2023. In that regard, the Company is evaluating term sheets relating to potential sales of assets in a bankruptcy proceeding. Given the Company’s lack of liquidity, any such bankruptcy filing may result in a complete or substantial loss of value for holders of our common stock.”
Investors are abandoning HGEN stock today with some 13 million shares on the move. That’s well above its daily average trading volume of 1.5 million shares. It also has the company’s stock down 71.6% as of Tuesday morning.
Investors looking for even more of the latest stock market news are going to want to stick around!
We’ve got all of the most recent stock happenings worth reading about on Tuesday! A few examples include why shares of Electra Battery Materials (NASDAQ:ELBM) and Dunxin Financial (NYSEMKT:DXF) stock are up, as well as the biggest pre-market stock movers this morning. All of this news is ready to go below!
More Tuesday Stock Market News
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.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
