the stock of Aravive Inc, a clinical stage biotechnology company, is witnessing a sharp decline in its value following the company revealing its intention to voluntarily terminate the listing of its common stock on the Nasdaq Global Select Market. Additionally, based on the ownership of its shares by fewer than 300 holders of record, the company plans to deregister its common stock under the Securities Exchange Act of 1934, as amended, and suspend its public reporting obligations.
The stock, which closed Wednesday’s session at $0.11, experienced a notable dip, opening Thursday morning’s trading at $0.049.
At the time of this publication, Aravive Inc stock (ARAV) has witnessed a decline.
Aravive Inc
Current Price: $0.06
Change : -0.06
Change (%): (-50.14%)
Volume: 11.0M
Source: Tomorrow Events Market Data
As disclosed in its 2023 annual stockholder’s meeting, stockholders of Aravive Inc approved the transfer and assignment of all or substantially all of the company’s assets for the benefit of creditors. The meeting also endorsed the dissolution and liquidation of the company, contingent upon the board’s determination that such actions were in the best interests of Aravive Inc. Subsequently, on January 12, 2024, the board officially approved the transfer of assets and the voluntary dissolution and liquidation of the company.
The Nasdaq Stock Market had previously raised concerns, notifying Aravive Inc on September 15, 2023, that the company was not in compliance with several listing requirements. For the preceding 30 consecutive business days (August 3, 2023, through September 14, 2023), the market value of the company’s listed securities, publicly held shares, and common stock did not meet the minimum requirements set by Nasdaq Listing Rules.
Aravive Inc is currently not in compliance with the Minimum Market Value of Listed Securities (MVLS) Requirement, the Minimum Market Value of Publicly Held Shares (MVPHS) Requirement, or the Minimum Bid Price Requirement. To facilitate an orderly delisting process, the company has decided to voluntarily terminate the listing of its common stock on the Nasdaq.
The next steps involve filing a Form 25 with the Securities and Exchange Commission (SEC) on or about January 29, 2024. The Nasdaq delisting is expected to become effective on or about February 8, 2024, leading to the cessation of trading on Nasdaq. Notably, the company has not made arrangements for listing and/or registration of its common stock on another national securities exchange or for quotation in a quotation medium.
Following the Nasdaq delisting, Aravive Inc plans to file a Form 15 with the SEC on or about February 8, 2024. At this point, the company anticipates the suspension of its obligation to file periodic reports under the Exchange Act, including annual, quarterly, and current reports on Form 10-K, Form 10-Q, and Form 8-K, respectively. This marks a significant development in Aravive Inc’s corporate trajectory, signaling a challenging period for the once-prominent biotechnology firm.
