PITTSBURGH, June 20, 2025 – In a move that sent ripples through the clinical-stage biotechnology sector, Lipella Pharmaceuticals Inc. announced today that it will be delisted from The Nasdaq Capital Market. The decision, handed down by the Nasdaq Hearings Panel, saw trading of the company’s common stock suspended at the open of business.
The delisting stems from Nasdaq’s determination that certain private placement transactions conducted between December 2024 and March 2025 did not fully align with Listing Rules 5100 (Public Interest Concern), 5635 (Shareholder Approval), and 5640 (Voting Rights). Specifically, the regulator scrutinized the issuance of Series C voting convertible preferred stock and warrants to the company’s placement agent and advisor for these transactions, citing the structure as a trigger for the rule violations.
Despite the setback, Lipella expressed disappointment at the outcome, particularly in light of immediate steps it was taking to obtain shareholder approval and address Nasdaq’s concerns.
“We acknowledge Nasdaq’s decision and are focused on taking swift, constructive steps accordingly,” said Dr. Jonathan Kaufman, Chief Executive Officer of Lipella. “Our commitment to our shareholders, our mission, and our clinical goals has not changed.”
The company, however, remains steadfast in its operational soundness and underlying business fundamentals. Lipella is pressing ahead with its strategic and clinical development plans, including the continued advancement of its lead product candidates: LP-10, targeting hemorrhagic cystitis, and LP-310, aimed at oral lichen planus.
Adding another layer to the story, Lipella is actively exploring alternative markets to list its common stock, signaling a commitment to finding a trading venue that will foster the best possible liquidity and access for investors. Currently, the company’s common stock is available on the OTC Markets under the symbol “LIPO.”
Lipella, a clinical-stage biotechnology firm, is focused on innovative drug development, reformulating active agents within existing generic drugs and tailoring them for new applications. The company zeroes in on diseases with extensive unmet needs, carving a niche in areas where established drug therapies are currently lacking. The company completed its initial public offering in 2022.
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