CERo Therapeutics Announces Receipt of Nasdaq Panel Determination

Core Points - CERo Therapeutics Holdings, Inc. will have its shares suspended from trading on Nasdaq starting October 31, 2025, following a determination by the Nasdaq Hearings Panel to deny the company's request for continued listing [1] - The company plans to appeal the Panel's decision and is seeking to trade its shares on the OTC Markets while continuing its clinical operations [1][5] Financial Compliance - CERo has struggled to comply with Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders' equity of $2.5 million [2] - In April 2025, the company believed it had regained compliance after a financing round that included the issuance of Series D Convertible Preferred Stock valued at $5 million [2] - However, due to difficulties in valuing Marketable Securities, the company sold them at a substantial discount, leading to a determination of non-compliance with the Equity Rule [3][4] Panel Decision - The Nasdaq Panel's decision was based on a retroactive assessment of non-compliance as of April 22, 2025, disregarding the company's plans for future compliance [4] - The company has executed parts of its compliance plan, including receiving approximately $2.25 million from the sale of Series E Convertible Preferred Stock and subscriptions for an additional $4.75 million [4] Future Plans - CERo has submitted a request for review of the Panel's decision and is exploring trading on the OTC Markets, although this market is less liquid than Nasdaq [5] - The company intends to continue its clinical trials, specifically for its lead product candidate, CER-1236, which has shown promising early-stage results in patients with AML [6][7] - CERo is reviewing its cash resources and potential financing alternatives to support ongoing operations [7] Company Overview - CERo is focused on developing next-generation engineered T cell therapeutics for cancer treatment, utilizing a unique approach that combines innate and adaptive immunity [8] - The company's proprietary technology aims to enhance tumor targeting through Chimeric Engulfment Receptor T cells (CER-T), which may offer advantages over existing CAR-T therapies [8]