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Molecular Templates Announces Receipt of Expected Notification of Deficiency from Nasdaq Related to Delayed filing of Quarterly Report on Form 10-Q and Failure to Meet Bid Price Requirements
Globe Newswire 2-Dec-2024 5:06 PM
AUSTIN, Texas, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Molecular Templates, Inc. (NASDAQ:MTEM, "Molecular Templates, " or "MTEM" or the "Company")), a clinical-stage biopharmaceutical company focused on the discovery and development of proprietary targeted biologic therapeutics, known as engineered toxin bodies, to create novel therapies with potent and differentiated mechanisms of action for cancer, announced that it has received an expected deficiency notification letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") on November 25, 2024. The notice indicated that MTEM is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule") as a result of its failure to timely file its Quarterly Report on Form 10-Q for the period ended September 30, 2024 (the "Form 10-Q"), as described more fully in MTEM's Form 12b-25 Notification of Late Filing (the "Form 12b-25") filed with the Securities and Exchange Commission (the "SEC") on November 15, 2024. The Listing Rule requires Nasdaq-listed companies to timely file all required periodic reports with the SEC. MTEM has until January 24, 2025 to submit a plan of compliance with respect to the notice.
On November 25, 2024, MTEM also receive a notice with respect to its failure to maintain a $1.00 bid price in accordance with the Nasdaq Rule 5550(a)(2) (the "Minimum Bid Price Requirement") as the closing price of the Company's common stock as reported by Nasdaq was less than $1.00 for the preceding 30 business days. In accordance with Nasdaq rules, MTEM has been provided a 180-calendar day compliance period, or until May 26, 2025, to regain compliance with the Minimum Bid Price Requirement. To regain compliance with the Minimum Bid Price Requirement, the closing bid price of the common stock must meet or exceed $1.00 per share for a minimum of 10 consecutive business days during the 180-calendar day compliance period. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A)(iii), if the price of the common stock is less than $0.10 during a compliance period, Nasdaq will issue a delisting determination for the common stock.
At this time, the Company has not yet determined whether to appeal these notices, submit plans of compliance or to take other action to address these deficiencies. The notices have no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Capital Market.
About Molecular Templates
Molecular Templates is a clinical-stage biopharmaceutical company focused on the discovery and development of next-generation ADCs. Our drug platform technology, known as Engineered Toxin Bodies (ETBs), leverages the resident biology of a genetically engineered toxin payload to create novel therapies with potent and differentiated mechanisms of action for cancer and various disease indications.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). Molecular Templates disclaims any intent or obligation to update these forward-looking statements and claims the protection of the Act's Safe Harbor for forward-looking statements. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future compliance with Nasdaq listing requirements, prospects, plans and objectives of management are forward-looking statements. In addition, when or if used in this press release, the words "may," "could," "should," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict" and similar expressions and their variants, as they relate to Molecular Templates may identify forward-looking statements. Examples of such statements include, but are not limited to, statements regarding any future actions the Company may take regarding the notices received from Nasdaq, the future price of the Company's common stock and the Company's ability to maintain the listing of its common stock on Nasdaq or otherwise continue its operations.
Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Continued investment in the Company's common stock is highly speculative at this point. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to the following: the effects of the pending potential dissolution of the Company on its stockholders who are not currently expected to receive value for their shares of common stock; the continued availability of financing on commercially reasonable terms; whether Molecular Templates' cash resources will be sufficient to fund any future operations; the results of MTEM's clinical studies which may be unable to resume in the near-term; the ability to effectively operate MTEM and retain key employees post-MTEM's previously announced restructuring and reductions in force; the ability of MTEM to maintain the continued listing of its common stock on Nasdaq; the ability of MTEM to resume its regular and required Exchange Act reporting obligations which the Company is currently unable to do; and those risks identified under the heading "Risk Factors" in Molecular Templates' filings with the Securities and Exchange Commission, including its most recently filed Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and any subsequently filed reports. Any forward-looking statements contained in this press release speak only as of the date hereof, and Molecular Templates specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise.
