Humanigen Inc (fka HGENQ)

[cowtown jay]

We have until 4pm Eastern on Tuesday to request a hearing to appeal the delisting determination before the Nasdaq Hearings Panel. Getting prepared for that hearing should be the top priority, as I'm confident that it is.

According to the 8-K, "As previously disclosed, on August 24, 2022, Humanigen, Inc. (the “Company”), received a letter from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it was not in compliance with Nasdaq Listing Rule 5550(a)(2), as the minimum bid price of the Company’s common stock has been below $1.00 per share for 30 consecutive business days...

The Nasdaq Staff’s letter specifically noted that, "... the Company does not comply with the stockholders’ equity initial listing requirement for The Nasdaq Capital Market. The total market value of the Company’s listed securities also remains below the $35 million requirement for continued listing on The Nasdaq Capital Market..."

I see where Rule 5550(a)(2) addresses the $1.00 minimum bid requirement, and the $35M minimum market value of our listed securities.

5550. Continued Listing of Primary Equity Securities
A Company that has its Primary Equity Security listed on the Capital Market must continue to meet all of the requirements set forth in Rule 5550(a) and at least one of the Standards set forth in Rule 5550(b). Failure to meet any of the continued listing requirements will be processed in accordance with the provisions set forth in the Rule 5800 Series.

(a) Continued Listing Requirements for Primary Equity Securities:

(1) At least two registered and active Market Makers, one of which may be a Market Maker entering a stabilizing bid;

(2) Minimum bid price of at least $1 per share;

(3) At least 300 Public Holders;

(4) At least 500,000 Publicly Held Shares; and

(5) Market Value of Publicly Held Shares of at least $1 million.

(b) Continued Listing Standards for Primary Equity Securities:

(1) Equity Standard: Stockholders' equity of at least $2.5 million;

(2) Market Value of Listed Securities Standard: Market Value of Listed Securities of at least $35 million; or

(3) Net Income Standard: Net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years.

https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5500-series

I recall that we initially listed based on the "Equity Standard."

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=157610802

That initially required $5M, according to pg 11 of the listing guide. We meet that listing standard, even according to Rule 5550 (b) (1)

https://listingcenter.nasdaq.com/assets/initialguide.pdf

But Nasdaq is not applying the Equity Standard in this regard. It appears that they are applying the Market Value of Listed Securities Standard. That requires $50M, which we do not meet (again, pg 11)

But it's ultimately a moot point, since we still need to trade at >$1.00 minimum bid within 6 months. It may be worth questioning that at the hearing.

Any positive news should lift us well above share prices of $0.294 ($35M), $0.419 ($50M?), or $1.00 ($119.1M). Those are the share price levels needed to meet the cited deficiencies in the market value of the Company’s listed securities, the disputed value of the stockholders' equity, and the minimum bid price requirement, respectively, from what I can determine.