CHESTERBROOK, PA — Trevena, Inc. (Nasdaq: TRVN) announced that its common stock is set to be delisted from The Nasdaq Stock Market LLC following a decision by the Nasdaq Hearings Panel on October 4, 2024. The move comes after the company’s failure to meet the minimum stockholder’s equity requirement as outlined in Nasdaq Listing Rule 5550(b)(1), commonly referred to as the Equity Standard Rule.
The company had been given until October 2, 2024, to regain compliance with the equity standard, but was unable to meet the stipulated requirements. Consequently, trading of Trevena’s common stock on Nasdaq will be suspended at the start of business on October 8, 2024.
This delisting implies that Trevena’s stock will transition to trading on the Pink Open Market, operated by the OTC Markets Group, Inc., often referred to as the “pink sheets.” This shift to over-the-counter trading typically results in reduced liquidity and decreased investor visibility, as OTC markets are generally less regulated and less transparent than major stock exchanges like Nasdaq.
Delisting from Nasdaq occurs for various reasons, including failure to adhere to financial and regulatory standards, voluntary withdrawal by the company, or financial distress. In Trevena’s case, the inability to comply with the equity standards set by Nasdaq was the primary factor.
As Trevena’s shares move to the OTC market, there remains uncertainty regarding market activity. There is no guarantee that brokerage firms will continue to make a market in the stock, which could impact its trading volume and price stability.
On the last trading day before the announcement, October 4, 2024, Trevena’s stock closed at $4.6050. The company now faces the challenge of navigating the implications of its delisting while continuing to pursue its business objectives in the biopharmaceutical sector.
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