Cellectar Biosciences Announces Financial Restatement
Cellectar Biosciences, Inc. (NASDAQ: CLRB), a biopharmaceutical company in the late stages of clinical development, is dedicated to the discovery, development, and commercialization of cancer therapies. Recently, the company announced plans to restate its previously issued financial statements. This decision follows a delinquency notification letter received from Nasdaq, which was prompted by a delay in filing the Quarterly Report on Form 10-Q for the quarter ending June 30, 2024.
Details of the Notification from Nasdaq
The notification from Nasdaq indicated that Cellectar is not in compliance with the requirement to file periodic financial reports, as outlined in Nasdaq Listing Rule 5250(c)(1). The delay stems from the necessity for Cellectar to restate certain financial statements linked to its earlier filings, specifically affecting the Quarterly Report for the second quarter of 2024.
Reasons for Financial Restatement
The need for a financial restatement is primarily due to the company's reassessment of its accounting treatment for warrants issued during a financing round in October 2022. This review was conducted after Cellectar enlisted Deloitte & Touche LLP as an independent registered accounting firm to examine these issues. The anticipated adjustments to the financial statements will be non-cash and non-operational, meaning they will not have a direct impact on the company's cash flow.
Tentative Timeline for Compliance
Cellectar has been allotted a 60-day timeframe to submit a compliance plan to Nasdaq, which must be completed by a specified deadline. If the plan is approved, it could grant the company an extension of up to 180 days to achieve compliance with Nasdaq’s regulations. In the event that Nasdaq does not accept the plan, Cellectar retains the right to appeal the decision.
Impact on Company’s Stock Listing
As of now, the notification does not affect the listing of Cellectar's common stock on The Nasdaq Capital Market. The company is dedicated to finalizing the restatement process within approximately six weeks, after which it intends to file the delayed Quarterly Report.
About Cellectar Biosciences, Inc.
Cellectar Biosciences focuses on developing proprietary drugs specifically for cancer treatment. The company’s distinctive approach utilizes the Phospholipid Drug Conjugate™ (PDC) delivery platform, which aims to enhance the delivery of therapies, thereby improving effectiveness and minimizing side effects associated with off-target actions.
Product Pipeline Overview
The company’s leading asset, iopofosine I 131, is a small-molecule PDC that facilitates targeted delivery of iodine-131 (a radioisotope) for potential therapeutic advantages. In addition to this key product, Cellectar is advancing multiple preclinical PDC chemotherapeutic programs and maintaining various partnerships to strengthen its PDC assets.
Contact Information
For media inquiries, please reach out to:
Claire LaCagnina
Bliss Bio Health
315-765-1462
clacagnina@blissbiohealth.com
For investor inquiries, please contact:
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.
