The Nasdaq Hearings Panel denied CERo Therapeutics’ request to continue listing its common stock, a decision retroactive to April 22, 2025, and effective at the open of trading on October 31, 2025.
The denial stems from a valuation adjustment of the company’s marketable securities, which were sold at a substantial discount to face value in August 2025. The adjustment reduced the company’s stockholders’ equity below Nasdaq’s minimum requirement of $2.5 million, and Nasdaq staff had no discretion to grant a cure period because the company had already been subject to a mandatory monitoring period.
The suspension will interrupt trading liquidity and jeopardize the remaining $4.75 million of the Series E Convertible Preferred Stock financing, which is contingent on continued Nasdaq listing. The company has already raised $2.25 million from the sale of Series E shares and is exploring trading on the OTC Markets while preparing an appeal of the panel decision.
Despite the regulatory setback, CERo remains focused on its AML clinical program. Early data for its lead candidate, CER‑1236, show no dose‑limiting toxicities and robust cell expansion in patients, and the company continues to advance the program while addressing the listing issue.
The company’s compliance history includes a prior delisting notice on August 28, 2025, for failing to meet the minimum bid price requirement, and a previous panel determination that restored compliance on May 7, 2025. The current denial underscores the ongoing challenges the company faces in maintaining Nasdaq listing standards.
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