XTL Biopharmaceuticals Ltd. received a Nasdaq notification letter on December 22, 2025, and publicly disclosed the receipt of the letter on December 24, 2025. The letter cites a 30‑day period during which the company’s closing bid price fell below the required $1.00 minimum, placing XTLB in non‑compliance with Nasdaq Listing Rule 5550(a)(2).
Under the notification, XTLB has a 180‑day compliance window that ends on June 22, 2026. To cure the deficiency, the company must achieve a closing bid price of at least $1.00 for ten consecutive business days within that period. If XTLB fails to meet the requirement, it may be granted an additional 180‑day extension provided it satisfies other listing standards and, if necessary, implements a reverse stock split. Failure to cure the deficiency could trigger delisting of the company’s American Depositary Shares, which would severely limit liquidity and investor access.
XTLB’s business model centers on an intellectual‑property portfolio that includes ownership of The Social Proxy Ltd., a web‑data AI company, and a sublicensing arrangement for hCDR1, a lupus‑treatment candidate. The company’s financial profile is weak: its Altman Z‑Score sits at –23.68, and both return on equity and return on assets are negative, at –26.83% and –24.74% respectively. These figures signal high bankruptcy risk and a lack of profitability, which help explain why the bid price has struggled to reach the $1 threshold. The company’s limited revenue base and ongoing R&D expenses further constrain its ability to generate the cash flow needed to support a healthy bid price.
Nasdaq has recently tightened its rules on reverse stock splits, effective late 2024, to prevent companies from repeatedly using such splits to avoid delisting. XTLB’s last reverse split occurred on February 10, 2017 (a 1:5 split). Under the new rules, a recent reverse split can limit the length of a compliance period or trigger additional scrutiny. Consequently, XTLB’s potential cure strategy must navigate both the bid‑price requirement and the stricter split regulations.
The regulatory risk posed by the Nasdaq notification carries significant implications for XTLB’s capital‑raising prospects. A delisting would reduce the company’s visibility to institutional investors and could depress demand for its remaining shares, making it harder to secure new equity or debt financing. Even if XTLB cures the deficiency, the negative perception of a prolonged bid‑price deficiency may persist, potentially affecting future investor confidence and the company’s ability to monetize its IP assets.
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