Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
On August 25, 2021, Allena Pharmaceuticals, Inc. (the "Company") received a
letter from the Listing Qualifications Department (the "Staff") of the Nasdaq
Stock Market ("Nasdaq") notifying the Company that, for the 30 consecutive
business day period between July 14, 2021 through August 24, 2021, the Company's
common stock had not maintained a minimum closing bid price of $1.00 per share
(the "Minimum Bid Price Requirement") required for continued listing on The
Nasdaq Global Select Market pursuant to Nasdaq Listing Rule 5550(a)(2). The
Nasdaq letter does not result in the immediate delisting of the Company's common
stock from The Nasdaq Global Select Market.
In accordance with Nasdaq Listing Rule 5810(c)(3)(A) (the "Compliance Period
Rule"), the Company has been provided an initial period of 180 calendar days, or
until February 21, 2022 (the "Compliance Date"), to regain compliance with the
Minimum Bid Price Requirement. If, at any time during this 180-day period, the
closing bid price for the Company's common stock closes at $1.00 or more per
share for a minimum of 10 consecutive business days, as required under the
Compliance Period Rule, the Staff will provide written notification to the
Company that it complies with the Minimum Bid Price Requirement and the common
stock will continue to be eligible for listing on The Nasdaq Global Select
If the Company does not regain compliance with the Minimum Bid Price Requirement
by the Compliance Date, the Company may be eligible for an additional 180
calendar day compliance period. To qualify, the Company would be required to
transfer to The Nasdaq Capital Market and meet the continued listing requirement
for the market value of publicly held shares and all other initial listing
standards for The Nasdaq Capital Market, with the exception of the Minimum Bid
Price Requirement, and would need to provide written notice to Nasdaq of its
intention to cure the deficiency during the additional compliance period.
If it appears to the Staff that the Company will not be able to cure the
deficiency, the Staff will provide written notice to the Company that its common
stock will be subject to delisting. At that time, the Company may appeal the
Staff's delisting determination to a Nasdaq Hearing Panel (the "Panel"). The
Company expects that its stock would remain listed pending the Panel's decision.
There can be no assurance that, if the Company does appeal the Staff's delisting
determination to the Panel, such appeal would be successful.
The Company intends to monitor the closing bid price of its common stock and
may, if appropriate, consider available options to regain compliance with the
Minimum Bid Price Requirement, which could include seeking to effect a reverse
stock split. However, there can be no assurance that the Company will be able to
regain compliance with the Minimum Bid Price Requirement, secure a second period
of 180 days to regain compliance, or maintain compliance with any of the other
Nasdaq continued listing requirements.
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