Windtree Therapeutics, a biotech company that recently adopted a BNB treasury strategy, experienced a massive 77% share price drop after being notified of its Nasdaq delisting.
The Nasdaq issued a noncompliance notice under Listing Rule 5550(a)(2), which requires listed companies to maintain a minimum bid price of $1.00 per share. Windtree’s shares fell drastically to $0.11 on Wednesday, marking a 77.2% decline in a single day, according to Google Finance. After-hours trading saw an additional 4.7% dip.
The Nasdaq will suspend WINT trading starting Thursday, adding pressure to the firm that had already seen its stock fall over 90% since July 18, when it hit a short-lived peak after announcing its BNB treasury plan.
Windtree’s Crypto Treasury Strategy Backfires
On July 16, Windtree announced a $60 million purchase agreement with Build and Build Corp, giving the firm exposure to BNB tokens. It also secured a $500 million equity line of credit and a separate $20 million stock-purchase pact to expand its crypto holdings.
Initially, the move boosted Windtree’s stock by 32% in two days, but the rally was short-lived. The company has not disclosed its current BNB holdings or whether it plans to continue this strategy after the delisting notice.
CEO Responds to Nasdaq Action
Windtree’s CEO, Jed Latkin, stated that the company will continue making financial disclosures despite losing its Nasdaq listing. Similar cases, such as Argo Blockchain, have regained compliance after suspension, but it remains unclear if Windtree can stage a comeback.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.