Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On June 24, 2024, eFFECTOR Therapeutics, Inc. (the "Company") received notice from the Listing Qualifications Staff (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq") indicating that, based upon the Company's announcement on June 24, 2024, that the Company has terminated its employees and plans to wind down its operations, Nasdaq believes the Company is a "public shell" and will apply more stringent criteria to maintain the Company's listing with Nasdaq. Further, Nasdaq indicated that the Company no longer qualified with certain Nasdaq listing requirements, including the majority independent board requirement under Listing Rule 5605(b)(1); the audit committee composition requirement under Listing Rule 5605(c)(2); the compensation committee composition requirement under Listing Rule 5605(d)(2) and the Independent Director oversight of Director Nominations requirement under Listing Rule 5605(e)(1). Nasdaq also noted that the Company has not regained compliance with the requirement under Listing Rule 5550(b)(2) to maintain a market value of listed securities above $35 million, as previously disclosed by the Company on May 17, 2024.
As a result, Nasdaq provided notice that, unless the Company requests an appeal, trading of the Company's common stock will be suspended at the opening of business on July 3, 2024 and Nasdaq will file a Form 25 Notification of Delisting with the Securities and Exchange Commission which will remove the Company's securities from listing and registration on The Nasdaq Stock Market.
The Company does not plan to appeal the Staff's determination. The Company further intends to file a Form 15 with the Securities and Exchange Commission to suspend its reporting obligations under the Securities Exchange Act of 1934, as amended.
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eFFECTOR Therapeutics Inc. published this content on 25 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 June 2024 21:19:57 UTC.