Celularity Inc.: Navigating Nasdaq Compliance Challenges

Celularity Inc. (Nasdaq: CELU), a regenerative medicine company, recently received a notice from the Nasdaq Stock Market LLC (Nasdaq) regarding its delisting due to delayed filings of Forms 10-Q for the periods ended March 31, 2024, and June 30, 2024. The Company has confirmed its intention to file an appeal and submit a plan to regain compliance.

Celularity's financial constraints and resource limitations have contributed to its delayed filings. The Company has faced significant financial challenges, which have affected its ability to file financial reports on time. However, these delays are not due to any accounting irregularities or issues but rather reflect the limitations imposed by its liquidity constraints and stretched internal resources.

To address its liquidity issues and strengthen its financial position, Celularity has taken several steps. The Company has filed its annual report on Form 10-K for fiscal year 2023 within the compliance period and its quarterly report on Form 10-Q for the first quarter of 2024 on October 16, 2024. Additionally, Celularity intends to file its Form 10-Q for the second quarter of 2024 within the coming weeks.

Celularity's recent acquisition of the Rebound™ product is expected to enhance its cash position and provide a stronger foundation for operational stability. The acquisition will meaningfully impact the Company's financial outlook and may help it avoid similar delays in future filings.

If Nasdaq does not accept Celularity's appeal or plan for regaining compliance, there could be potential consequences for the Company's stock and investor confidence. The Company's common stock and warrants continue to trade on the Nasdaq Capital Market under the symbols "CELU" and "CELUW," respectively. However, there can be no assurance that Nasdaq will accept the plan, or that the Company will regain compliance within any additional compliance period or maintain compliance with other Nasdaq listing requirements.

Celularity remains committed to regaining full compliance with Nasdaq's listing requirements and meeting its reporting obligations. The Company is working diligently with its auditors to complete the necessary filings and will provide further updates as developments occur.

In conclusion, Celularity Inc. is facing Nasdaq compliance challenges due to financial constraints and resource limitations. The Company is taking steps to address these issues and strengthen its financial position. The recent acquisition of the Rebound™ product is expected to enhance the Company's cash position and operational stability. However, the potential consequences for the Company's stock and investor confidence if Nasdaq does not accept its appeal or plan for regaining compliance remain a concern.