Klotho Neurosciences Regains Nasdaq Compliance, KLTO Stock Rises

Klotho Neurosciences announced that its stock has regained compliance with Nasdaq's continued listing requirements, avoiding delisting. The company had previously fallen short on bid price and stockholders' equity thresholds. Klotho's stock has gained over 200% in the past six months, and the FDA recently granted orphan drug designation for its ALS therapy candidate, unlocking seven years of market exclusivity.

Klotho Neurosciences, Inc. (NASDAQ: KLTO), a biotechnology company focused on neurodegenerative and aging-related diseases, has regained compliance with Nasdaq's continued listing requirements, successfully avoiding delisting. The company had previously fallen short of the minimum $1.00 bid price and $2.5 million stockholders' equity thresholds [1].

Klotho Neurosciences' stock has shown remarkable momentum, gaining over 200% in the past six months, despite its historically volatile trading pattern [2]. The company's current stock price stands at $1.35, although it faces challenges with a concerning current ratio of 0.29, indicating potential liquidity constraints [2].

The company received notification from The Nasdaq Stock Market LLC confirming that it now meets both the minimum $1.00 bid price requirement under Nasdaq Listing Rule 5550(a)(2) and the minimum stockholders’ equity threshold of $2.5 million under Listing Rule 5550(b)(1) [1]. As a result, Klotho will maintain its listing and continue trading on the Nasdaq Stock Market. However, Nasdaq will monitor the company’s compliance with the stockholders’ equity requirement for one year. Should Klotho fall below the minimum equity threshold during this period, it would face potential delisting without a cure period but would have the opportunity to request a new hearing [1, 2].

Klotho Neurosciences develops cell and gene therapies using a protein derived from a patented form of the human Klotho gene. The company’s portfolio includes proprietary cell and gene therapy programs using DNA and RNA as therapeutics and genomics-based diagnostic assays [2]. The company's recent developments include receiving Orphan Drug Designation from the FDA for its KLTO-202 therapy for treating Amyotrophic Lateral Sclerosis (ALS) [3]. This designation provides benefits such as tax credits, waiver of FDA fees, and seven years of market exclusivity upon approval [3].

Klotho Neurosciences also terminated its Share Exchange Agreement with SkyBell Technologies to prevent significant dilution of its existing shareholders and allow the company to focus on its core R&D programs. Additionally, the company raised over $11 million through warrant exercises, enabling it to eliminate all outstanding debt and meet Nasdaq listing requirements [2].

These developments indicate a period of significant activity and strategic decision-making for Klotho Neurosciences, as the company works to maintain its Nasdaq listing and advance its innovative therapies for neurodegenerative and aging-related diseases.

References:
[1] https://www.prnewswire.com/news-releases/klotho-neurosciences-inc-regains-full-compliance-with-nasdaq-minimum-closing-bid-price-and-stockholder-equity-rules-302506167.html
[2] https://www.investing.com/news/company-news/klotho-neurosciences-regains-nasdaq-compliance-93CH-4137238
[3] https://finance.yahoo.com/news/klotho-neurosciences-inc-granted-fda-090000187.html