AKAN - Why Is ContraFect (CFRX) Stock Down 23% Today?
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ContraFect (NASDAQ:CFRX) stock is falling on Friday after the company provided an update on its potential delisting from the Nasdaq Capital Market.
ContraFect notes in a filing with the SEC that the Nasdaq staff has rejected its request for continued listing on the exchange. The requires ContraFect to appeal the request before its stock is delisted on Jan. 31, 2023.
ContraFect has already indicated its intention to request a hearing with the Nasdaq Hearings Panel to appeal the staff decision. This will keep shares of CFRX stock from being suspended until after that hearing.
ContraFect also mentions that it intends to explore various methods of obtaining Nasdaq compliance. Currently, the company’s problems stem from low stockholders’ equity as well as its shares being under the minimum bid price of $1 each.
What This Means for CFRX Stock
Things are looking grim for the company as it doesn’t have many options available. A reverse stock split would take care of the company’s low share price. However, it wouldn’t address the low stockholders’ equity complaint.
It’s possible the Nasdaq Hearings Panel will reaffirm the staff decision and CFRX stock will be delisted. If that happens, the company might end up shifting shares to an OTC exchange instead.
CFRX stock is down 23.2% as of Friday morning.
Investors looking for all of the hottest stock market news will want to keep reading!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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