10/31/2025 | Press release | Distributed by Public on 10/31/2025 14:00
Item 8.01. Other Events
As previously disclosed in Form 8-K filed on April 14, 2025 by Entero Therapeutics, Inc. (the "Company"), on April 11, 2025, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company was not in compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market, under Listing Rule 5550(b)(1) (the "Equity Rule"), because the Company's stockholders' equity of ($3,876,738) as reported in the Company's Annual Report on Form 10-K for the period ended December 31, 2024 was below the required minimum of $2.5 million, and because, as of April 10, 2025 the Company did not meet the alternative compliance standards, relating to the market value of listed securities of $35 million or net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years.
As previously disclosed in Form 8-K filed on June 30, 2025 by the Company, based on the timely submission by the Company of a compliance plan, the Company received a letter on June 25, 2025 from Nasdaq granting an extension to the Company until October 8, 2025 to regain compliance with the Equity Rule, subject to the Company complying with certain terms of the extension.
In the Form 8-K filed by the Company on October 6, 2025, the Company disclosed that that it believed that it had stockholders' equity of at least $2.5 million in compliance with the Equity Rule as a result of the share exchange agreement dated September 30, 2025, between the Company, GridAI Corp, a Nevada corporation ("GridAI"), and the stockholders of all of the issued and outstanding shares of GridAI (the "Share Exchange"). On October 8, 2025, the Company also submitted a letter to Nasdaq stating that the Company was compliant with the Equity Rule as a result of the Share Exchange.
On October 28, 2025, the Company received a letter from Nasdaq (the "Letter") confirming that based on the Form 8-K filed by the Company on October 6, 2025, the Company is in compliance with the Equity Rule. The Letter also noted that if the Company fails to evidence compliance upon filing its next periodic report, it may be subject to delisting. At that time, Nasdaq will provide written notification to the Company, which may then appeal Nasdaq's determination to a Hearings Panel.