Windtree Therapeutics Delisted from Nasdaq After Failing Bid Price Requirements Triggers 77.21% Stock Drop

Windtree Therapeutics has been delisted from the Nasdaq Capital Market and is now trading on the over-the-counter (OTC) market following a failure to meet Nasdaq’s minimum bid price requirement of $1 for 30 consecutive business days under Listing Rule 5550(a)(2) [1]. The delisting was confirmed via SEC filings submitted on August 20, 2025, marking a significant regulatory downgrade for the clinical-stage biopharmaceutical and medical device company [1].

The move to OTC trading came after multiple unsuccessful attempts by Windtree to regain compliance, including reverse stock splits that failed to elevate its stock price within the mandated grace period [1]. The delisting triggered an immediate 77.21% drop in Windtree’s stock price, reducing its market capitalization to $3.152 million [1]. Over the past year, the company’s shares have plummeted nearly 99.98% from a peak of $517.50 on August 22, 2024 [1].

Windtree’s financial struggles are well-documented. In the most recent quarter, the firm reported a net loss of $10.64 million, a 163.04% increase compared to the prior quarter [1]. The company has attempted to raise capital through unconventional means, including a $60 million securities subscription and a $520 million financing agreement to purchase Binance Coin (BNB) [1]. Despite these efforts, Windtree’s stock has continued to decline, dropping 91.4% from a recent high of $1.28 after a brief recovery linked to its BNB treasury strategy in July 2025 [1].

The delisting signals deeper structural issues within the firm, particularly its inability to maintain financial and regulatory standards required for continued Nasdaq listing. As the company transitions to the less regulated OTC market, it is expected to face further challenges, including reduced liquidity and transparency, which may deter new investors and limit its ability to raise capital [1]. The situation reflects broader risks associated with speculative investments in companies that rely on non-traditional financial strategies without strong underlying performance or operational clarity.

Windtree’s CEO, Jed Latkin, stated that the company will continue to meet its reporting obligations despite the delisting, signaling an attempt to preserve some level of market credibility [1]. However, historical patterns show that firms that fail Nasdaq compliance standards rarely recover investor confidence without significant restructuring. This case reinforces the importance of maintaining regulatory compliance and financial stability, especially for companies operating in highly speculative sectors such as biotech and blockchain [1].

Despite the delisting and Windtree’s financial downturn, BNB, which is used in the company’s treasury, reached a record high above $880. This suggests that the broader cryptocurrency market has not been significantly impacted by Windtree’s delisting, at least in the short term [1]. Nonetheless, the firm’s situation highlights the potential volatility and regulatory risks for companies that adopt unconventional financial strategies without clear long-term viability [1].

[1] Source: https://www.odaily.news/en/newsflash/444247