Unity Biotechnology (UBX, Financials) shares collapsed nearly 49% Monday after the company disclosed that Nasdaq plans to delist its stock, citing diminished operations and failure to meet continued listing standards.
In a notice dated June 27, Nasdaq's Listing Qualifications Department told Unity it viewed the company as a “public shell,” pointing to recent layoffs, the shutdown of its ASPIRE study, and limited investment in revenue-generating projects. Unity also has no meaningful revenue and is currently evaluating strategic alternatives.
Unity acknowledged the notice in a regulatory filing and said it does not intend to appeal the delisting. Trading is expected to be suspended on July 9, after which Nasdaq will file to officially deregister the securities with the U.S. Securities and Exchange Commission.
This is the latest in a string of compliance failures. In March, Unity fell below the $10 million stockholders' equity requirement; in June, the stock remained under $1 for 30 consecutive trading days.
The company's board approved an operating plan in May to cut costs and explore options for its future, but the delisting marks a major blow for the once-promising biotech firm, which had been developing anti-aging and cellular senescence therapies.
UBX traded around 25 cents Monday afternoon — down from over $2 earlier this year.
