Business Context and Reporting Period
This Form 8-K Current Report was filed by iBio, Inc. on December 13, 2019, regarding events occurring on December 9, 2019. The Company is a Delaware corporation with its principal executive offices in New York, NY, and its common stock trades on the NYSE American under the ticker symbol "IBIO."
Key Financial Metrics and Listing Status
The filing does not provide specific revenue, profit, cash flow, or debt figures. However, it discloses the following financial conditions triggering listing non-compliance:
- Stockholders' Equity: Below $2,000,000 (violating Section 1003(a)(i)).
- Profitability: The Company has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years.
- Share Price: Securities have been selling at a low price per share for a substantial period.
Material Changes and Delisting Notice
On December 9, 2019, the NYSE American notified iBio, Inc. that it failed to meet continued listing standards. This follows a previous notification on October 16, 2019, regarding non-compliance with equity thresholds of $4,000,000 and $6,000,000 due to losses in three and five of the most recent fiscal years, respectively. As a result, the Company's stock will trade with a ".BC" designation to indicate non-compliance.
Outlook, Compliance Plan, and Risks
The Company has submitted a plan of compliance to the Exchange with the following targets:
- Share Price Improvement: Must effect a reverse stock split or demonstrate sustained share price improvement by June 9, 2020.
- Equity Restoration: Must regain compliance with stockholder equity requirements by October 16, 2020.
Risks: If the plan is not accepted, or if the Company fails to make progress consistent with the plan or achieve compliance by the specified deadlines, the NYSE American will initiate delisting proceedings.
Investor Verification Checklist
- Verify the Company's current stockholders' equity balance to confirm it remains below the $2,000,000 threshold.
- Monitor the stock price to determine if a reverse stock split is executed before the June 9, 2020 deadline.
- Review the Company's progress reports to ensure compliance with the equity restoration plan by October 16, 2020.
- Check for any subsequent filings regarding the initiation of delisting proceedings if deadlines are missed.