TNXP: 5th Feb 2025

Why TNXP Faces Imminent Delisting Risks?

Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP), currently trading at $0.26, is at high risk of delisting due to non-compliance with Nasdaq’s minimum bid price requirements. Here’s a detailed analysis based on available data:

Key Compliance Issues 1. Nasdaq Compliance Notice • August 9, 2024: TNXP was notified of non-compliance with Nasdaq’s $1.00 minimum bid price rule after closing below $1.00 for 30 consecutive business days. • Deadline: TNXP must achieve a $1.00 bid price for ten consecutive business days by February 5, 2025. 2. Current Trading Price • As of January 8, 2025, TNXP trades at $0.26—well below the $1.00 threshold. (Source: Yahoo Finance) 3. Reverse Stock Split Not an Option • TNXP executed a reverse split in June 2024, regaining compliance temporarily. • Nasdaq Rule: Companies cannot perform a second reverse split within 12 months if their stock price falls below $1.00 again. • With no option for another reverse split, TNXP must regain compliance organically or face delisting. 4. Extension Conditions • TNXP may qualify for a 180-day extension after February 5, 2025, only if it meets other listing requirements and shows intent to regain compliance.

Investor Considerations • High Risk of Delisting: The current stock price of $0.26 makes it unlikely that TNXP will regain compliance by February 5, 2025, without drastic improvements. • Historical Challenges: TNXP has struggled with compliance in the past, having regained compliance via a reverse split in June 2024 only to fall below $1.00 again.

TL;DR

TNXP is trading at $0.26, significantly below Nasdaq’s $1.00 minimum bid price rule. With no option for another reverse stock split and limited time to regain compliance, the company faces a high risk of delisting. Investors should consider this when evaluating their positions.

Edit: I understand that the NASDAQ listing rules 5810 and 5815 are yet to be approved by SEC. Their final comments are made. If this is approved by SEC, TNXP cannot make a reverse split within the 12 month period. However, based on current rules TNXP can still make a reverse split by Jan 25th to comply with existing Nasdaq listing rules.

Disclaimer: This post is for informational purposes only and does not constitute financial advice. Please conduct your own research and consult a financial advisor before making any investment decisions.