Entero Therapeutics completed a 100% acquisition of Grid AI Corp., a company valued at over $50 million, and the transaction enabled the biopharmaceutical firm to meet Nasdaq Listing Rule 5550(b)(1) requirements.
The rule requires a minimum of $2.5 million in market value of common equity and $2.5 million in shareholders’ equity. By integrating Grid AI’s capital and assets, Entero’s combined equity rose to $3.2 million in market value and $2.8 million in shareholders’ equity, surpassing the thresholds and averting a potential delisting.
Prior to the acquisition, Entero reported a net loss of $18.1 million for the year ended December 31, 2024, and a shareholders’ equity of $1.9 million, below the Nasdaq minimum. The reverse 1‑for‑3 stock split on August 14, 2025, was part of a broader effort to address bid‑price compliance.
The acquisition marks a strategic pivot from a focus on the Adrulipase enzyme program to a technology‑driven portfolio that includes grid‑edge AI and energy orchestration solutions. Grid AI’s Dynamic Load Shaping™ platform and Aggregation Management Platform position Entero in the growing data‑center and grid‑optimization markets.
Management emphasized that the deal provides a stronger balance sheet and access to new revenue streams while allowing continued investment in Adrulipase development. The company plans to pursue additional financing and clinical milestones without the immediate threat of Nasdaq delisting.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.