Following a dramatic spike in shares yesterday, exchange operators at Nasdaq pulled the circuit breaker on NexImmune (NASDAQ:NEXI). Though seemingly offering innovative solutions to disease treatment, the biotechnology firm has lost almost all its value since its initial public offering in 2021. As a result, NexImmune faces a possible dissolution of its business and NEXI stock did not see any trading on Friday.
According to information compiled by NasdaqTrader.com, the exchange halted trading on NEXI at 8:24 a.m. Eastern Friday. Operators did not provide a resumption time as of this writing.
The reason code for the action was listed as T12. Per the aforementioned website, the code represents a cessation of trading “pending receipt of additional information” requested by Nasdaq.
Fundamentally, the exchange operator has good reasons to be concerned about NEXI stock. Primarily, the company extended an invitation to its shareholders dated Nov. 20 to attend a special meeting, which will occur on Dec. 21 at 10 a.m. Eastern. The purpose of the meeting is to approve the liquidation and dissolution of NexImmune.
Specifically, the document states that “[t]he Board carefully reviewed and considered the Plan of Dissolution in light of the financial position of the Company, including its available cash, resources and operations following and in light of the Company’s review and pursuit of strategic alternatives.”
However, following a careful review, the board determined that dissolution represented the advisable path. In addition, it argues that such action emphasizes the best interests of the NexImmune and stakeholders of NEXI stock. Therefore, the board “unanimously recommends” that voting members vote in favor of the dissolution proposal and other proposals listed in an accompanying proxy statement.
In hindsight, one could argue that the writing was on the wall. At the beginning of September, industry journal Pharmaceutical Technology reported that NexImmune announced plans to reduce its workforce from 47 full-time employees to just 22. It also paused enrollment for three of its clinical trials.
Early last month, the Washington Business Journal stated that NexImmune was preparing to shut down. At the time, it had laid off “substantially all” its employees. Given the disclosed road to nowhere, it likely struck Nasdaq as odd that NEXI stock jumped 35% between Nov. 27 through Nov. 30.
Technically, then, the breather should allow investors to consider all available news before making a decision.
Why It Matters
As InvestorPlace’s William White mentioned, no analysts currently cover NEXI stock. However, in May of this year, a Barclays analyst rated shares a “buy” with a $50 price target. Suffice to say, such a lofty goal appears practically impossible to reach. Since its first public close, data from Google Finance reveals that NEXI hemorrhaged 99.61% of equity value.
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On the date of publication, Josh Enomoto 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.