Windtree Therapeutics, a biotech firm that launched a BNB treasury strategy last month, experienced a 77% drop on Wednesday after the Nasdaq notified the company of potential delisting for failing to comply with certain requirements.
The noncompliance was related to Nasdaq Listing Rule 5550(a)(2), which mandates a minimum bid price of $1.00 per share, as Windtree reported in a filing with the US securities regulator on Tuesday. Nasdaq plans to suspend WINT trading starting Thursday.
Windtree (WINT) shares plummeted 77.2% to $0.11 following the news and fell an additional 4.7% in after-hours trading, according to Google Finance data. The stock briefly rose on July 16 after announcing its BNB treasury strategy but has since dropped over 90% since its peak on July 18.
While some companies have prospered after implementing a crypto treasury strategy, Windtree has not been as fortunate. It joins a growing list of publicly traded companies using a BNB strategy, offering investors exposure to BNB without needing to hold the cryptocurrency directly.
Windtree to maintain financial disclosures
CEO Jed Latkin indicated in the filing that Windtree will uphold its reporting obligations despite the delisting.
Some crypto companies, like Argo Blockchain, have faced suspension on Nasdaq but were eventually relisted after meeting compliance requirements.
Windtree made significant announcements, then went silent
Windtree commenced its BNB treasury on July 16 by revealing a $60 million purchase agreement with Build and Build Corp, including options for an additional $140 million.
WINT surged 32.2% in the following days before beginning its decline.
About a week later, it entered into a $500 million equity line of credit with an undisclosed investor, along with a separate $20 million stock purchase agreement with Build and Build Corp to acquire additional BNB tokens.
Windtree has not shared details on the quantity of BNB it holds or whether it will continue with its BNB treasury strategy. Cointelegraph has reached out for a comment.
BNB rises on Wednesday, reaches new high
BNB emerged as one of the top performers among leading altcoins on Wednesday, climbing 5.6% to $876.26 and achieving a new all-time high as the wider crypto market rebounded from a two-week low, according to CoinGecko data.
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BNB is one of the few major altcoins to reach a new peak this bull cycle, along with XRP (XRP) and Solana (SOL), while others like Ether (ETH), Dogecoin (DOGE), Chainlink (LINK), and Cardano (ADA) are still attempting to match highs achieved in 2021.
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