Delisting is highly probable unless the company raises significant capital (likely via dilutive offering) or executes a reverse split to boost equity. Monitor for a compliance plan filing by July 6, 2026. If the plan is rejected, an appeal to a Nasdaq Hearings Panel is possible but uncertain. The stock faces severe liquidity and institutional ownership risk if delisted.
Price Chart
Executive Summary
Tempest Therapeutics received a Nasdaq deficiency letter on May 19, 2026, for failing the minimum stockholders' equity requirement ($822,000 reported vs. $2.5M required). Additionally, board resignations triggered non-compliance with independent director and committee composition rules. The company has 45 days (until July 6, 2026) to submit a compliance plan, with a possible 180-day extension. Delisting risk is elevated given the company's $27M market cap, recent dilutive S-3 filings, and lack of alternative compliance paths.
Key Facts
- Stockholders' equity of $822,000 as of March 31, 2026, far below the $2.5M minimum requirement
- Company does not meet alternative Nasdaq standards (MVLS of $35M or net income of $500K)
- Board resignations of Michael Raab and Christine Pellizzari triggered non-compliance with independent director, audit, compensation, and nominating committee rules
- Company has 45 days (until July 6, 2026) to submit a compliance plan; Nasdaq may grant up to 180 additional days
- Two S-3 shelf registrations filed in March-April 2026, indicating prior capital needs and shareholder dilution
- No cure period available for board composition violations due to multiple vacancies
Financial Impact
Stockholders' equity deficit of ~$1.68M vs. Nasdaq minimum; $27M market cap at risk of delisting
Risk Factors
- Actual delisting from Nasdaq, severely reducing institutional ownership and liquidity
- Need for dilutive capital raise to regain compliance, further pressuring common stock
- Inability to attract independent directors to fix board composition issues
- Going-concern risk if financing cannot be secured
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-237207 |
| Document: 0001193125-26-237207-index-headers.html | 0001193125-26-237207 |
| Document: 0001193125-26-237207-index.html | 0001193125-26-237207 |
| Document: 0001193125-26-237207.txt | 0001193125-26-237207 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | DEF 14A | $0.5102 | awaiting T+20 | — | $0.5110 (−0.16%) |
Oct 20, 2026 7d ago | DEFA14A | $0.5282 | awaiting T+20 | — | $0.5110 (−3.26%) |
Oct 20, 2026 7d ago | 8-K | $0.5282 | awaiting T+20 | — | $0.5110 (−3.26%) |
Oct 19, 2026 8d ago | 8-K | $0.5762 | awaiting T+20 | — | $0.5110 (−11.32%) |
Oct 2, 2026 25d ago | EFFECT | $0.8112 | awaiting T+20 | — | $0.5110 (+37.01%) |
Sep 25, 2026 4w ago | S-3 | $0.8316 $0.5102 | ▲ +38.65% | ▲ +38.62% | $0.5110 (+38.55%) |
Sep 17, 2026 5w ago | 8-K | $0.9680 $0.6240 | ▼ −35.54% | ▼ −35.74% | $0.5110 (−47.21%) |
Sep 16, 2026 5w ago | DEFA14A | $0.8950 $0.6350 | ▼ −29.05% | ▼ −30.51% | $0.5110 (−42.91%) |
Sep 16, 2026 5w ago | 8-K | $0.8950 $0.6350 | ▼ −29.05% | ▼ −30.51% | $0.5110 (−42.91%) |
Sep 11, 2026 6w ago | Press Release | $0.8117 $0.7601 | ▲ +6.36% | ▲ +8.23% | $0.5110 (+37.05%) |
US Market Status
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