Is CEL-SCI Corporation (NYSEMKT:CVM) in Danger of Delisting?

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CEL-SCI Corporation (NYSEMKT:CVM) shares dipped 1.17% on Friday to $0.119 and flat in after-hours trading. The company has a market cap of $22.30 million at 190.22 million shares outstanding. Share prices have been trading in a 52-week range of $0.10 to $0.66.

CEL-SCI Corporation is a company that is engaged in the research and development at developing the treatment of cancer and other diseases by using the immune system. As such, it is focused on activating the immune system to fight cancer and infectious diseases and operates through the segment of research and development of certain drugs and vaccines.

In particular, the company is developing Multikine, which is an investigational immunotherapy under development for treatment of certain head and neck cancers, and anal warts or cervical dysplasia in human immunodeficiency virus and human papillomavirus co-infected patients and Ligand Epitope Antigen Presentation System technology. This has three investigational therapies: LEAPS-H1N1-DC, which is a product candidate under development for treatment of pandemic influenza in hospitalized patients, and CEL-2000 and CEL-4000, which are vaccine product candidates under development for treatment of rheumatoid arthritis.

In a press release last week, CEL-SCI Corporation shared that it received communication from NYSE MKT staff on the company’s noncompliance with certain listing requirements. In particular, the company reported a stockholders’ equity deficit as of June 30, 2016 and had a net losses in five of its most recent fiscal years ended September 30, 2015. It has been given the opportunity to maintain its listing by submitting a plan of compliance by January 9, 2017, which must advise of actions the company has taken or will take to regain compliance with the continued listing standards by June 11, 2018.

Noncompliance with the rules cited above came about a result of our total market capitalization having fallen below $50 million. The Exchange will not normally consider suspending dealings in, or removing from listing, the securities of an issuer which is otherwise below the stockholders’ equity criteria in the sections noted above but has a market capitalization of at least $50 million. Therefore one of the ways we can regain compliance is by achieving and maintaining market capitalization of at least $50 million,” explained Geert Kersten, CEO of CEL-SCI Corporation.

This follows the CEL-SCI Corporation announcement made a few days prior on its decision to sell 34,024,000 shares of common stock and warrants to purchase common stock at a price of $0.125. The gross proceeds to CEL-SCI Corporation from this offering are expected to be approximately $4.25 million. This excludes any future proceeds that may be received from the exercise of the warrants. The company intends to use the net proceeds from the offering to fund the continued development of Multikine, LEAPS and for other general corporate purposes.

The warrants consist of 17,012,000 Series CC warrants to purchase 17,012,000 shares of common stock, 34,024,000 Series DD warrants to purchase 34,024,000 shares of common stock and 34,024,000 Series EE warrants to purchase 34,024,000 shares of common stock. The Series CC warrants are immediately exercisable, expire in five-years and have an exercise price of $0.20 per share. The Series DD warrants are immediately exercisable, expire in six-months and have an exercise price of $0.18 per share. The Series EE warrants are immediately exercisable, expire in nine-months and have an exercise price of $0.18 per share,” the press released indicated.

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