Polyrizon Ltd. faces potential delisting from Nasdaq due to shareholder dilution concerns, plans to appeal the decision.
Quiver AI Summary
Polyrizon Ltd., a biotech company based in Raanana, Israel, announced that it has received a notification from Nasdaq indicating its intent to delist the company's securities due to concerns about shareholder dilution linked to a recent issuance of Series A warrants from a securities purchase agreement. While the notification does not result in immediate delisting or impact the trading of Polyrizon's shares, the company plans to request a hearing to contest the decision, which will temporarily suspend any delisting action until the hearing and any subsequent extension period are resolved. Polyrizon specializes in developing innovative intranasal hydrogels aimed at creating protective barriers against viruses and allergens in the nasal cavity.
Potential Positives
- The Nasdaq notification allows the company to request a hearing, which could potentially delay or prevent the delisting of their securities.
- The company's innovative hydrogel technology for nasal delivery presents a unique market opportunity, potentially attracting future investments and partnerships.
- The press release highlights the company's ongoing development efforts, including enhancements to their hydrogel technology and the introduction of new products, which may indicate future growth potential.
Potential Negatives
- The notification from Nasdaq indicates potential delisting due to substantial dilution of shareholder value, which may negatively impact investor confidence.
- The Company has to appeal the Nasdaq decision, adding uncertainty regarding its future listing status and operational stability.
- This situation may divert management’s focus and resources away from research and development activities toward addressing the delisting issue.
FAQ
What recent notification did Polyrizon receive from Nasdaq?
Polyrizon received a notification letter regarding a potential delisting of its securities due to public interest concerns.
Will Polyrizon's ordinary shares be immediately delisted?
No, there will be no immediate delisting; the shares will continue to trade pending a hearing request.
What was the reason for Nasdaq's delisting notification?
The delisting notification was due to substantial dilution for shareholders from a recent issuance of securities.
What technology does Polyrizon specialize in?
Polyrizon specializes in intranasal hydrogels, particularly for creating a barrier against viruses and allergens.
What is the next step for Polyrizon following the notification?
Polyrizon intends to request a hearing before a Hearings Panel to appeal the delisting determination.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
Raanana, Israel, May 23, 2025 (GLOBE NEWSWIRE) -- Polyrizon Ltd. (Nasdaq: PLRZ) (the “Company” or “Polyrizon”), a development stage biotech company specializing in the development of innovative intranasal hydrogels, announced that it has received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”), stating that based on its review of the Company’s public filings with the Securities and Exchange Commission (the “SEC”), its staff has determined to delist the Company’s securities pursuant to its discretionary authority under Listing Rule 5101. The receipt of the Nasdaq notification letter does not result in the immediate delisting of the Company’s ordinary shares and has no current immediate effect on the listing or trading of the Company’s ordinary shares on the Nasdaq Capital Market, under symbol “PLRZ.”
Specifically, as set forth in the letter, Nasdaq’s staff determined that the Company’s issuance of securities pursuant to the securities purchase agreement dated March 31, 2025, particularly the Series A warrants exercisable on an alternate cashless basis as described in the Company’s prior SEC filings, raises public interest concerns because the issuance resulted in substantial dilution for its shareholders.
Accordingly, and as described in the notification letter, unless the Company timely requests a hearing before a Hearings Panel (the “Panel”), the Company’s securities would be subject to suspension/delisting. Accordingly, the Company intends to timely request a hearing before the Panel. The hearing request will automatically stay any suspension or delisting action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing.
About Polyrizon
Polyrizon is a development stage biotech company specializing in the development of innovative medical device hydrogels delivered in the form of nasal sprays, which form a thin hydrogel-based shield containment barrier in the nasal cavity that can provide a barrier against viruses and allergens from contacting the nasal epithelial tissue. Polyrizon’s proprietary Capture and Contain
TM
, or C&C, hydrogel technology, comprised of a mixture of naturally occurring building blocks, is delivered in the form of nasal sprays, and potentially functions as a “biological mask” with a thin shield containment barrier in the nasal cavity. Polyrizon are further developing certain aspects of our C&C hydrogel technology such as the bioadhesion and prolonged retention at the nasal deposition site for intranasal delivery of drugs. Polyrizon refers to its additional technology, which is in an earlier stage of pre-clinical development, that is focused on nasal delivery of active pharmaceutical ingredients, or APIs, as Trap and Target ™, or T&T. For more information, please visit
https://polyrizon-biotech.com
.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the Company’s ability to continue to remain listed on Nasdaq and the Company’s ability to successfully appeal the Nasdaq staff’s delisting determination. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report filed with the SEC on March 11, 2025 and subsequent filings with the SEC.. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Polyrizon is not responsible for the contents of third-party websites.
Contacts:
Michal Efraty
Investor Relations
IR@polyrizon-biotech.com
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
