Enlivex plans Nasdaq delisting appeal as 1‑for‑16 split takes effect
A recent reverse split rules out a 180-day compliance period, while Enlivex says a timely hearing request would preserve trading pending the hearing.
Adrian Kessler
A breach of Nasdaq’s US$1 minimum bid rule has triggered a delisting notice for Enlivex Ltd. NASDAQENLV, the company said on Tuesday. A reverse split within the preceding 12 months makes it ineligible for a 180-day period to regain compliance, according to the release.
The notice is dated Oct. 26 and cites Nasdaq Listing Rule 5550(a)(2). It concerns closing bids over the 30 consecutive business days before Oct. 22. Enlivex plans to request an oral hearing under Rule 5815, saying a timely request would stay suspension or delisting pending the hearing.
Enlivex is an Israeli clinical-stage immunotherapy developer focused on inflammatory conditions associated with aging that also operates a prediction-markets digital-asset treasury. Its principal therapeutic focus is osteoarthritis, through its experimental treatment Allocetra.
The company is implementing a 1-for-16 reverse split effective Oct. 27 to support its appeal and attempt to regain compliance. Its announcement describes an intention to appeal, and gives no filing deadline or hearing date.
For holders, the immediate issue is continued access to Nasdaq trading pending the hearing, subject to a timely request. Enlivex says its ordinary shares would continue trading on the Nasdaq Capital Market during that period, but gives no assurance of continued listing after the hearing.
“The Company cannot provide assurances that the Appeal will ultimately be successful and that its ordinary shares will continue to trade on the Nasdaq Capital Market following the hearing,” Enlivex said in the release.
The split announcement dated Oct. 22 says outstanding ordinary shares will fall to approximately 1,531,995 from 24,511,905. The final total is subject to rounding, with fractional entitlements rounded up to whole shares.
Authorized ordinary shares will also be reduced to 9,895,833 from 158,333,333. The company says its transfer agent will send certificate-exchange instructions to shareholders of record.
Warrants and options will receive proportionate adjustments to their exercise prices and the shares issuable on exercise. Enlivex says ownership percentages will remain unchanged apart from fractional-share rounding, while voting rights and other share terms will remain intact.
Apart from fractional-share rounding, the split does not give an existing holder a larger proportional interest in the business. Enlivex presents it as a step toward compliance and support for the appeal; its Oct. 27 release reports no successful appeal outcome.
Share Consolidation Leaves Listing Decisions Open
A comparison elsewhere on the desk is Canopy Growth Corporation TSEWEED NASDAQCGC, whose shareholders authorized a possible consolidation on Oct. 23. Its Oct. 26 announcement allows a ratio between one-for-five and one-for-15, with implementation left to the board.
Canopy’s authority expires if unused within 12 months of the meeting. That is an authorization stage, whereas Enlivex has specified an effective date and ratio for its consolidation.
Read more: Canopy Growth Corporation shareholders authorize up to 1-for-15 reverse split
The broader biotechnology benchmark, iShares Biotechnology ETF NASDAQIBB, closed at US$208.69 on Oct. 26 at 4:00 p.m. EDT, according to Google Finance. That close predates Enlivex’s announcement.
Enlivex’s Oct. 27 release also warns that its shares’ price and liquidity may be correlated with the digital assets it holds. Its listing appeal therefore sits alongside exposure to both clinical development and its prediction-markets treasury strategy.
Oct. 27 is the scheduled start of split-adjusted trading under the same ENLV symbol. The next procedural step identified in the release is a timely hearing request, which the company says would preserve Nasdaq trading pending the panel hearing.
