Burcon NutraScience Corp. (NASDAQ: BRCN) is a plant protein and ingredients company that has been struggling for a while. In April it received a notification of noncompliance from the Nasdaq Capital Market. Since then the situation has been seemingly spiraling out of control, resulting in a hard BRCN price plummet.
BRCN Being Pushed off NASDAQ
Things have been getting from bad to worse for Burcon NutraScience shareholders after recent updates received from management. After receiving a notification of noncompliance from NASDAQ, regarding its minimum bid rule, the company announced its plans to delist from the exchange. This was due to its inability to comply with the deadline, even through consolidation. BRCN’s official auditors from Pricewaterhouse Coopers also gave in their resignation to the company, as a result of which the annual general meeting faces delay. Given these developments, BRCN has fallen by nearly 23% in a single day, indicating the market’s negative reaction to the news of the delisting.
Future Prospects for Burcon NutraScience
The impacts of the delisting are certainly going to be negative on the stock, as it will most likely shift to the OTC markets. A listing on NASDAQ gives the stock of a company significant exposure, and therefore results in quick price climbs upon positive catalyst realization. A shift to the OTC impacts the credibility of a company, and could potentially dissuade institutional investors from considering the stock. Although BRCN still holds a listing on the Toronto Stock Exchange, the delisting from NASDAQ could impact its financial sustainability, by making the stock inaccessible to shareholders.
The fact of the matter is, that things look bleak for Burcon NutraScience. An already fast-falling share price has eventually pushed the stock out of its NASDAQ listing and adds to the woes of shareholders. A major breakthrough is the need of the hour for the stock to bounce back from this fall.