Athersys Inc. plans to ask for a reprieve on the delisting of its shares from the Nasdaq Stock Market during a meeting in late May.
The Cleveland regenerative medicine startup has been restructuring to cut costs since mid-2022 while raising money to complete clinical trials of its MultiStem adult stem cell therapy.
Last week, Athersys was notified that its shares had failed to regain a market value of at least $35 million, CEO Dan Camardo said during a business update on Wednesday.
So in late May, Athersys plans to ask Nasdaq for an additional 180 days (until October) to meet this listing requirement, Camardo said. In the meantime, Athersys shares will continue to trade on Nasdaq, he said.
Also on Wednesday, Camardo reported progress on recruiting partners to help commercialize MultiStem to treat ischemic stroke and acute respiratory distress syndrome patients.
"We remain committed to finding a partner that aligns with our mission of bringing MultiStem to market and pursuing a deal that's in the best interest of our shareholders," Camardo said.
The Cleveland company recently agreed with the U.S. Food & Drug Administration on major modifications to its pivotal ischemic stroke study, known as Masters II, which have "the potential to be a significant value driver for Athersys," he said.
In addition, Athersys has been looking for companies to license or sell its novel cryogenic storage system, known as the Secure Integrated Freezer Unit, or SIFU, as well as its Belgian animal science subsidiary, ReGenesys, which could provide much-needed cash.
"We're in talks with multiple parties to license or sell our SIFU technology, which is a great example of an innovative asset with significant potential... that we are now treating differently to realize its full potential and value," Camardo said.
On Monday, Athersys raised an additional $3.7 million in equity from unnamed institutional investors that also invested in the company in August and November, he said.
"We've come a long way in a very short period of time under some challenging circumstances," Comardo said. "We still have more work to do, but our path forward with MultiStem and Masters II, in particular, is now clear, and we will remain focused on execution."
Shares of Athersys (Nasdaq: ATHX) were down 5% to about 98 cents in early afternoon trading on Wednesday.
