Will CEL-SCI Corporation(NYSEMKT:CVM) Be Delisted Soon?


CEL-SCI Corporation (NYSEMKT:CVM) shares fell 0.42% on Friday to $0.119. The company has a market cap of $22.30 million at 190.22 million shares outstanding. Share prices have been trading in a 52-week range of $0.10 to $0.66.

In a press release last week, CEL-SCI Corporation revealed that it received communication from NYSE MKT staff on the company’s noncompliance with certain listing requirements. In particular, it reported a stockholders’ equity deficit as of June 30, 2016 and had a net losses in its 5 most recent fiscal years ended September 30, 2015 so it is below compliance with Section 1003(a)(i), Section 1003(a)(ii) and Section 1003(a)(iii).

“Noncompliance with the rules cited above came about a result of our total market capitalization having fallen below $50 million. The Exchange will not normally consider suspending dealings in, or removing from listing, the securities of an issuer which is otherwise below the stockholders’ equity criteria in the sections noted above but has a market capitalization of at least $50 million. Therefore one of the ways we can regain compliance is by achieving and maintaining market capitalization of at least $50 million,” explained CEL-SCI Corporation CEO Geert Kersten.

With that, CEL-SCI Corporation was given the opportunity to maintain its listing by submitting a plan of compliance by January 9, 2017. This plan must advise of actions the company has taken or will take to regain compliance with the continued listing standards by June 11, 2018.

Now potential delisting or actual delisting from the NYSE MKT isn’t such bad news, especially if the company still has strong fundamentals or is facing a strong outlook. In fact, the company’s plans to regain compliance could shed more light on the projects it has under development and the potential for higher revenues down the line. As such, it could renew investor confidence that share prices and capitalization will eventually pick up.

Still, this news could continue to drag shares lower in the meantime until CEL-SCI Corporation actually submits its requirements. The company has confirmed that it intends to submit the NYSE MKT staff’s required plan by January 9, 2017. This report follows the company’s decision to  sell 34,024,000 shares of common stock and warrants to purchase common stock at a price of $0.125.

CEL-SCI Corporation is engaged in the research and development of the treatment of cancer and other diseases by using the immune system. It is focused on activating the immune system to fight cancer and infectious diseases and operates through the segment of research and development of certain drugs and vaccines.

Multikine is its investigational immunotherapy under development for treatment of certain head and neck cancers, and anal warts or cervical dysplasia in human immunodeficiency virus and human papillomavirus co-infected patients and Ligand Epitope Antigen Presentation System technology. This technology has more than two investigational therapies: LEAPS-H1N1-DC, a product candidate under development for treatment of pandemic influenza in hospitalized patients, and CEL-2000 and CEL-4000, vaccine product candidates under development for treatment of rheumatoid arthritis.