Mereo BioPharma Group plc (NASDAQ:MREO), (“Mereo” or the “Company”), a clinical-stage biopharmaceutical company focused on oncology and rare diseases, today announced that on May 23, 2022, it received a notification letter from the Listing Qualifications Department of the Nasdaq Stock Market, LLC (“Nasdaq”) notifying the Company that its American Depositary Shares (“ADSs”) failed to maintain a minimum bid price of $1.00 over the previous 30 consecutive business days as required by the Listing Rules of Nasdaq. This notification letter does not result in the immediate delisting of the Company’s ADSs, and the ADSs will continue to trade, uninterrupted on the Nasdaq Global Market, under the symbol “MREO.”
Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of 180 calendar days, or until November 21, 2022, to regain compliance with Nasdaq’s minimum bid price requirement. If at any time during this period, the closing bid price of the Company’s ADSs is at least $1.00 for a minimum of 10 consecutive business days, the Company will be deemed to have regained compliance. Nasdaq will then provide a written confirmation of compliance and the matter will be closed.
In the event that Mereo does not regain compliance by November 21, 2022, the Company may be eligible for an additional 180 calendar day grace period by providing a written notice of its intention to cure the deficiency during this second compliance period. If the Company does not regain compliance during the initial grace period and is ineligible for an additional grace period, Nasdaq will provide written notice that the ADSs are subject to delisting from the Nasdaq Global Market. In that event, the Company may appeal the determination to a hearing panel.
Mereo intends to monitor the closing bid price of its ADSs. Receipt of this notification letter has no effect on the Company’s business operations.