Cellectar Announces Restatement of Financial Statements

Cellectar Biosciences Announces Financial Restatement

Cellectar Biosciences, Inc. (NASDAQ: CLRB), a late-stage clinical biopharmaceutical company focused on discovering, developing, and commercializing cancer treatments, recently shared plans to restate its previously issued financial statements. This announcement comes as the company received a delinquency notification letter from Nasdaq due to a delay in filing its Quarterly Report on Form 10-Q for the quarter ending June 30, 2024.

Details of the Notification from Nasdaq

The notification received by Cellectar indicated non-compliance with the periodic financial report filing requirement as per Nasdaq Listing Rule 5250(c)(1). The delay has arisen because Cellectar needs to restate certain financial statements related to its previous filings. Specifically, this impacts the Quarterly Report for the second quarter of 2024.

Reasons for Financial Restatement

The restatement is primarily influenced by the company’s need to reassess its accounting treatment for warrants issued in a financing round completed in October 2022. This evaluation was carried out after Cellectar engaged Deloitte & Touche LLP as an independent registered accounting firm to review those matters. The expected changes to the financial statements will be non-cash and non-operational, meaning they will not directly influence the company’s cash flow.

Tentative Timeline for Compliance

Cellectar has been given a 60-day period to submit a compliance plan to Nasdaq, which must occur by a specified deadline. If approved, this plan would provide an extension of up to 180 days for the company to regain compliance with Nasdaq’s regulations. Should the Nasdaq not accept the plan, Cellectar has the right to appeal that decision.

Impact on Company’s Stock Listing

At present, the receipt of the notification does not impact the listing of Cellectar's common stock on The Nasdaq Capital Market. The company is committed to completing the restatement process within approximately six weeks, after which it plans to submit the delayed Quarterly Report.

About Cellectar Biosciences, Inc.

Cellectar Biosciences specializes in developing proprietary drugs aimed at cancer treatment. The company’s unique focus is on the Phospholipid Drug Conjugate™ (PDC) delivery platform. This innovative approach is designed to enhance the delivery of treatments, leading to improved efficacy and reduced side effects associated with off-target actions.

Product Pipeline Overview

The company’s lead asset, iopofosine I 131, is a small-molecule PDC that enables targeted delivery of iodine-131 (a radioisotope) for potential therapeutic benefits. Alongside this key product, Cellectar is advancing several preclinical PDC chemotherapeutic programs and maintaining various partnerships to bolster its PDC assets.

Contact Information

For media inquiries, please contact:

Claire LaCagnina
Bliss Bio Health
315-765-1462
clacagnina@blissbiohealth.com

For investor inquiries, reach out to:

Chad Kolean
Chief Financial Officer
investors@cellectar.com

Frequently Asked Questions

What is the reason for Cellectar's financial restatement?

The financial restatement is necessary due to the reassessment of accounting treatment for warrants related to a financing round completed in October 2022.

How long does Cellectar have to submit a compliance plan to Nasdaq?

Cellectar has 60 calendar days to submit its compliance plan to Nasdaq.

Will Cellectar's stock be affected by the notice from Nasdaq?

Currently, the notice does not impact the listing of Cellectar's common stock on The Nasdaq Capital Market.

What is Cellectar’s primary focus as a biopharmaceutical company?

Cellectar’s primary focus is on the discovery and development of proprietary drugs for cancer treatment.

What is the Phospholipid Drug Conjugate technology?

The Phospholipid Drug Conjugate™ delivery platform is an innovative approach to enhance the targeting and delivery of cancer treatments to improve efficacy and reduce side effects.

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