Cerecor, a Baltimore pharmaceutical development firm that went public in October 2015, has been notified that its stock no longer qualifies for listing on the Nasdaq market because it's been trading at under $1 a share for 30 days.
Cerecor disclosed the notification in a filing with the Securities and Exchange Commission. Cerecor has 180 days, or until Aug. 23, to regain compliance with the rule.
"The company is presently evaluating various courses of action to regain compliance," it said in the filing.
In early February, Cerecor announced it hired SunTrust Robinson Humphrey Inc. to help it explore and review a range of strategic alternatives, including an acquisition, merger, business combination or some other transaction.
"The engagement of SunTrust adds to our ongoing efforts to explore various options for Cerecor," said Dr. Uli Hacksell, Cerecor's president and CEO.
Cerecor shares nosedived late last year after it reported that Phase 2 studies of its antidepressive drug CERC-501 failed to demonstrate efficacy on a critical measure. It also was found to be ineffective in helping with smoking cessation, as had been hoped.
Shares plunged from over $5 each in late November to under $1 by mid-January. They closed Monday at 74 cents.
Cerecor acquired CERC-501 from Eli Lilly & Co. in early 2015. Later that year, it sold stock to the public for the first time, selling shares for $6.50 each and raising $26 million to fund development of the drugs in its pipeline.