Telesis Bio Inc. (NASDAQ:TBIO) to Delist from Nasdaq Global Select Market
SAN DIEGO – In a strategic move, Telesis Bio Inc. (NASDAQ:TBIO), a pioneer in automated synthesis technology for therapeutic discovery, has announced its decision to voluntarily delist its common stock from the Nasdaq Global Select Market. This move comes after the company realized it would not be able to meet Nasdaq's continued listing requirements concerning stockholders' equity and market value.
The firm has informed Nasdaq of its intention to remove its common stock from listing and will proceed with the delisting by filing a Form 25 with the SEC around September 20, 2024. The last day of trading on the Nasdaq is expected to be around September 30, 2024. Despite the delisting, Telesis will still adhere to reporting obligations under Sections 13 and 15(d) of the Exchange Act.
Earlier this year, Nasdaq notified Telesis on April 3 that it fell short of the minimum stockholder's equity requirement of $10 million. A 180-day grace period was granted, which expires on September 30, 2024. Additionally, on June 6, Telesis received a notice of non-compliance with the minimum market value of publicly held shares, which remained below the required $5 million for over 30 consecutive business days.
Following the delisting, Telesis anticipates its common stock to be quoted on an over-the-counter (OTC) market operated by OTC Markets Group Inc., with the goal of maintaining a trading market for its securities. However, there is no guarantee that brokers will continue to make a market in the common stock or that trading will persist on an OTC market or elsewhere.
Telesis Bio is renowned for its Gibson Assembly method and automated benchtop DNA and mRNA synthesis systems, which have significantly contributed to advancements in various fields such as medicine, biologics drug discovery, vaccine development, genome editing, and cell and gene therapy.
In recent news, Telesis Bio has undergone substantial changes in its board and financial structure. The company recently sold its subsidiary, EtonBio, Inc., to individual investor Yuan (Terry) Yang as part of its strategic reorganization. Additionally, Telesis Bio secured $5.85 million through promissory notes with Novalis Lifesciences II, L.P. and Northpond Ventures III, LP, resulting in significant changes in the company's board of directors.
The company also settled its previous debt of approximately $5.84 million with MidCap Financial Trust and MidCap Funding IV, and initiated a reverse stock split, reducing its outstanding common shares from around 30.1 million to about 1.7 million. Furthermore, Telesis Bio announced a strategic shift towards DNA and mRNA synthesis technology, supported by a co-development and marketing agreement with a leading automation provider.
InvestingPro Insights:
As Telesis Bio Inc. (NASDAQ:TBIO) prepares to delist from the Nasdaq Global Select Market, recent data from InvestingPro reveals insights into the company's financial health and stock performance. With a market capitalization of 6.95 million USD, Telesis has seen a notable decline in revenue over the last twelve months leading up to Q2 2023, with a decrease of approximately 29.68%. This aligns with analysts' expectations of a sales decline in the current year.
The company's stock price has exhibited significant volatility, with a strong return over the last three months but declines of 60.23% and 82.24% over the six-month and one-year periods, respectively. This volatility is noted in InvestingPro's analysis, highlighting the stock price movements as quite volatile.
Telesis has faced profitability challenges, reflected in negative P/E ratios. Analysts do not anticipate the company will be profitable this year.
For a comprehensive analysis of Telesis Bio's financial state and market prospects, InvestingPro offers additional insights and tips. Check out 10 more InvestingPro Tips available for Telesis Bio for a deeper dive into the company's performance.
In conclusion, the decision by Telesis Bio to delist from the Nasdaq Global Select Market signifies a strategic shift in the company's operations. Investors should be mindful of the potential impact on the company's stock performance and financial health, as indicated by recent data and trends. Understanding these dynamics can help investors make informed decisions regarding their investments and financial strategies.