MALVERN, PA — Annovis Bio Inc. (NYSE: ANVS) faces potential delisting from the New York Stock Exchange after its market capitalization fell below the exchange’s minimum threshold while the biotechnology company reported negative stockholders’ equity, triggering a nine-month period to restore compliance.
The Malvern-based company received a noncompliance notice Oct. 29 after its average market capitalization over 30 consecutive trading days dropped to approximately $48.4 million as of Oct. 28, below the NYSE’s $50 million requirement.
Annovis also reported a stockholders’ deficit of approximately $4.3 million as of June 30, leaving it below the exchange’s $50 million equity threshold.
Under Section 802.01B of the NYSE Listed Company Manual, companies can fall out of compliance when their average market capitalization remains below $50 million over a consecutive 30-trading-day period and stockholders’ equity is also below $50 million.
The notice does not immediately remove Annovis shares from the exchange. The company’s stock will continue trading under ANVS, with an additional “.BC” designation indicating that it falls below continued listing criteria.
Annovis has notified the NYSE that it intends to submit a compliance plan within 45 days of receiving the notice. The plan must identify actions the company has taken or intends to take to satisfy the exchange’s requirements within nine months of the notice.
The NYSE will have 45 days to evaluate the submission and determine whether Annovis has demonstrated a reasonable ability to regain compliance.
If the exchange accepts the plan, Annovis can continue trading during the remediation period, subject to meeting the plan’s requirements and other listing standards. The NYSE will review the company’s progress semiannually.
Failure to submit an acceptable plan, comply with its terms or restore compliance within nine months would expose Annovis to suspension and delisting proceedings.
The exchange can also accelerate delisting if shares trade at prices considered abnormally low. The NYSE generally regards prices below 10 cents per share as falling into that category.
Annovis stated that the notice does not affect its business operations, Securities and Exchange Commission reporting obligations or compliance with material debt and other agreements.
The company is developing buntanetap, an investigational oral treatment for neurodegenerative diseases, including Alzheimer’s disease and Parkinson’s disease. Annovis describes itself as a Phase 3 clinical-stage biotechnology company.
The listing notice creates an additional financial and regulatory challenge for Annovis as it advances its drug development programs.
The “.BC” designation will be removed if the company restores compliance with NYSE listing requirements.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.