Moolec Science Hit with Nasdaq Notice Over Delayed Annual Report
Moolec Science SA (MLEC), a Luxembourg-based biotech firm pioneering molecular farming for plant-based proteins, received a Nasdaq determination letter on November 28, 2025, citing noncompliance with Listing Rule 5250(c)(1) for failing to file its 2024 Form 20-F annual report by the October 31 deadline, putting its Nasdaq Capital Market listing at risk ahead of a December hearing. Trading continues uninterrupted (shares ~$0.45, down 5% post-news), but Nasdaq may suspend unless compliance is regained via filing or appeal success; the company cited audit complexities in emerging markets as delays, with no immediate delisting impact on customers or operations.
Violation Details and Timeline
Nasdaq's notice stems from the extended 20-F deadline lapse, a common biotech hurdle amid SEC scrutiny on international filings (e.g., IFRS reconciliations, SOX controls); Moolec disclosed the issue via 6-K on November 29, noting efforts to finalize with auditors but no firm date. Prior notices hit MLEC for minimum bid price (<$1 for 30 days, Oct 2025), resolved via reverse split, signaling ongoing compliance pressures for microcaps (~$30M mcap).
Company Background and Financial Snapshot
Moolec develops hybrid crops yielding animal-like proteins (e.g., GLP-1 drugs via soybeans), post-SPAC merger (2023) with a $100M PIPE; Q3 2025 revenue ~$1.2M (up 20% YoY) but net loss $8M on R&D ($4M capex for Peru/Argentina trials). Cash runway ~12 months at $15M burn; shares volatile (52W $0.30-$3.50), YTD -70% amid biotech funding crunch and GLP-1 competition from Eli Lilly
Implications and Hearing Outlook
Delisting risks OTC trading or full removal, eroding liquidity/investor access for MLEC's $50M Phase 2 ambitions; peers like SoundHound faced similar (resolved via filings). Success odds ~70% if 20-F filed pre-hearing (historical precedent: 80% appeals granted extensions); downside caps at halt, not bankruptcy—watch Dec 10-15 panel decision.
Moolec's innovation pipeline supports rebound potential, but compliance fixes critical amid Nasdaq's biotech purge (15 delistings YTD).
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