PolyPid announces receipt of Nasdaq notice of non-compliance with minimum capital requirements

PETACH TIKVA, Israel, Nov. 29, 2024 (GLOBE NEWSWIRE) — PolyPid Ltd. (Nasdaq: PYPD) (“PolyPid” or the “Company”), a late-stage biopharmaceutical company focused on improving surgical outcomes, today announced that it has received a written notice (the “Notice”) from Listing Qualifications -Personal received from The Nasdaq Stock Market LLC (“Nasdaq”) informing that the Company no longer meets the minimum capital requirement for continued listing on Nasdaq Capital Markets Listing Rule 5550(b)(1) for failing to maintain a minimum capital requirement of $2,500,000. In the Company’s Form 6-K dated November 13, 2024, the Company reported shareholders’ equity of approximately $2,158,000 as of September 30, 2024.

Under Nasdaq rules, the company has 45 calendar days, or until January 9, 2025, to submit a return-to-compliance plan. If the plan is adopted, Nasdaq may grant an extension of up to 180 calendar days from the date of the letter to demonstrate compliance. The Notice Letter has no immediate impact on the Company’s listing on the Nasdaq Capital Market and during the grace period, which may be extended, the Company’s common stock will continue to trade on the Nasdaq under the symbol “PYPD.”

The outcome of the open-label interim analysis in the Company’s ongoing Phase 3 SHIELD II study evaluating D-PLEX100 for the prevention of abdominal colorectal wound infections is expected in December 2024. Under the terms of the Company’s private placement financing to be completed in January 2024 (“January PIPE”), the Company has the potential to secure an additional $18.5 million if the unblinded interim analysis results in the study being terminated based on a positive outcome In addition, under the terms of the private placement financing (“August PIPE”) completed in August 2024, the Company has the potential to raise an additional 6.1 million US dollars if the open-label interim analysis results in the study being discontinued due to positive efficacy or continuation of planned patient enrollment (up to 630 subjects) and all authorizations are exercised by the Company the capital requirements of Nasdaq shareholders when the warrants issued under the January PIPE and August PIPE are exercised.

About PolyPid

PolyPid Ltd. (Nasdaq: PYPD) is a late-stage biopharmaceutical company focused on improving surgical outcomes. Through locally administered, controlled, sustained-release therapeutics, PolyPid’s proprietary PLEX (Polymer-Lipid Encapsulation matriX) technology combines with active pharmaceutical ingredients (APIs), enabling precise drug delivery with optimal release rates over periods ranging from several days to to months. PolyPid’s lead product candidate D-PLEX100 is in Phase 3 clinical trial for the prevention of abdominal colorectal wound infections. In addition, the company is currently in the preclinical phase to test the effectiveness of OncoPLEX for the treatment of solid tumors, starting with glioblastoma.
For more company information, visit http://www.polypid.com and follow us on Twitter and LinkedIn.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company uses forward-looking statements when discussing regaining compliance with Nasdaq’s continued listing requirements, the timing and impact thereof, and the Company’s expectation that the Company will be able to meet the requirements set forth in the January PIPE and To exercise the warrants issued in August PIPE to demonstrate compliance with the capital requirements of Nasdaq shareholders. Forward-looking statements are not historical facts and are based on management’s current expectations, beliefs and projections, many of which are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved and actual results may differ materially from those expressed or indicated in the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission, including, but not limited to, the risks discussed in the Company’s annual report on Form 20-F filed on March 6, 2024. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable securities laws. If the Company updates one or more forward-looking statements, it should not be inferred that the Company will make any additional updates with respect thereto or with respect to any other forward-looking statements.

References and links to websites are provided for your convenience and the information contained on such websites is not incorporated by reference into this press release. PolyPid is not responsible for the content of third party websites.

Contacts:
PolyPid Ltd.
Ori Varshavsky
COO – USA
908-858-5995
[email protected]

Investors:
Brian Ritchie
LifeSci Advisor
212-915-2578
[email protected]