Rubius Therapeutics (NASDAQ:RUBY) stock is falling hard on Tuesday after the biotechnology company received a Nasdaq delisting notice.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the company doesn’t meet the requirements to list on the Nasdaq exchange. That’s due to shares of RUBY stock trading below the $1 minimum bid price for too long.
That warning from the exchange would see shares of RUBY stock delisted on Feb. 15, 2023. However, Rubius Therapeutics intends to seek a hearing with the Nasdaq Hearings Panel. This will have it laying out plans for how it will regain compliance.
Investors will note that this isn’t the first delisting notice for RUBY stock. The company’s prior warning came back on July 27, 2022. That gave it until Jan. 23, 2023, to regain compliance with the Nasdaq’s listing rules. It failed to achieve this.
What This Means for RUBY Stock
Rubius Therapeutics needs to convince the Nasdaq Hearings Panel that it can get shares back above the $1 trading minimum. It might choose a reverse stock split to bump up its share price. The company could also switch to the OTC Markets exchange if it can’t regain Nasdaq compliance.
RUBY stock has seen some 830,000 shares change hands as of this writing. That’s quickly gaining on its daily average trading volume of about 1.3 million shares. The stock is also down 16% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.