Onconetix's Imminent Nasdaq Delisting: A Sell-First-Ask-Later Moment

The clock is ticking for Onconetix, Inc. (NASDAQ: ONCO), as its triple threat of regulatory non-compliance, catastrophic liquidity collapse, and operational distress hurtles it toward an inevitable Nasdaq delisting. With a May 27 hearing looming, shareholders face a stark choice: exit now or risk being stranded in the OTC abyss. Here's why the writing is on the wall—and why waiting for clarity is a losing bet.

The Regulatory Death Spiral

Onconetix's failure to file its 2024 annual 10-K report and Q1 2025 10-Q filing is not a technicality—it's a red flag of systemic dysfunction. SEC filings are the lifeblood of public company credibility. Missing them for over five months signals either incompetence or intentional obfuscation of worsening conditions. Nasdaq's rules are clear: repeated delinquency triggers delisting. Even if Onconetix scrambles to file last-minute, the damage is done. Investors should ask: If management couldn't meet basic reporting deadlines, can they fix the root operational issues?

Liquidity Collapse: A $0.10 Stock Isn't a Stock

Onconetix's stock has been trading below $0.10 per share since late 2024—a freefall that breaches Nasdaq's $1 minimum bid price requirement for 30 consecutive trading days. This isn't a temporary dip; it's a death spiral. Nasdaq's accelerated delisting rule for sub-$1 stocks means time is running out. Even if the company wins a stay at the May 27 hearing, the price issue remains unresolved. A reverse stock split—a last-ditch fix—would require shareholder approval and is unlikely to mask underlying financial rot.

The chart shows ONCO plummeting from $1.50 in early 2024 to below $0.10 by late 2024, with no meaningful rebound.

The May 27 Hearing: A Pyrrhic Victory at Best

The Nasdaq Hearings Panel's decision on May 27 will likely seal Onconetix's fate. While the company claims it's “working tirelessly” to file delinquent reports, its lack of specific timelines or remediation plans raises doubts. Even if granted a stay, the bid price violation remains unresolved—a dual strike that Nasdaq rarely overlooks. Historically, companies with both reporting and price violations face a 90% delisting rate. For Onconetix, the path to compliance is not just steep—it's nonexistent.

OTC Downgrading: The Final Nail in the Coffin

If delisted, Onconetix's shares will plunge to the OTC markets—a graveyard for investor confidence. OTC stocks lose access to institutional investors, who require Nasdaq's liquidity and oversight. Liquidity will evaporate, and trading volume could collapse to near-zero. Worse, OTC status often triggers margin calls and forced sales by investors holding leveraged positions. With no capital market access, Onconetix's ability to fund operations—or even its FDA-approved ENTADFI—fades. Bankruptcy becomes not a risk but a timeline.

Why Wait for the Inevitable?

The math is simple: Onconetix's triple threat of regulatory failure, sub-penny stock, and impending hearing means delisting is all but certain. Investors who cling to hope risk total loss. The OTC downgrade isn't just a market move—it's a death sentence for shareholder value.

Action Item: Exit ONCO immediately. There is no upside left. Even if the stock briefly rallies ahead of the hearing—a classic “dead cat bounce”—it's a trap. Once delisted, recovery is nearly impossible. This isn't a call to “wait and see”—it's a call to cut losses before they become permanent.

The clock is ticking. The delisting is coming. Sell first. Ask later.

This article is for informational purposes only. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.