Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On July 12, 2019, Aileron Therapeutics, Inc. (the Company) received a deficiency letter from the Listing
Qualifications Department (the Staff) of the Nasdaq Stock Market (Nasdaq) notifying the Company that, for the last 30 consecutive business days, the bid price for the Companys common stock had closed below the minimum
$1.00 per share requirement for continued inclusion on the Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1) (the Bid Price Rule). The deficiency letter does not result in the immediate delisting of the Companys
common stock from the Nasdaq Global Market. In accordance with Nasdaq Listing Rule 5810(c)(3)(A) (the Compliance Period Rule), the Company has been provided an initial period of 180 calendar days, or until January 8, 2020 (the
Compliance Date), to regain compliance with the Bid Price Rule. If, at any time before the Compliance Date, the bid price for the Companys common stock closes at $1.00 or more per share for a minimum of 10 consecutive business
days, as required under the Compliance Period Rule, the Staff will provide written notification to the Company that it complies with the Bid Price Rule, unless the Staff exercises its discretion to extend
this 10-day period
pursuant to Nasdaq Listing Rule 5810(c)(3)(G).
If the Company does not regain
compliance with the Bid Price Rule by the Compliance Date, the Company may be eligible for an additional 180 calendar day compliance period. To qualify, the Company would need to transfer the listing of its common stock to the Nasdaq Capital Market,
provided that it meets the continued listing requirement for the market value of publicly held shares and all other initial listing standards, with the exception of the Bid Price Rule. To effect such a transfer, the Company would also need to pay an
application fee to Nasdaq and will need to provide written notice to the Staff of its intention to cure the deficiency during the additional compliance period.
If the Company does not regain compliance with the Bid Price Rule by the Compliance Date and is not eligible for an additional compliance period at that time,
the Staff will provide written notification to the Company that its common stock may be delisted. At that time, the Company may appeal the Staffs delisting determination to a Nasdaq Listing Qualifications Panel (the Panel). The
Company expects that its stock would remain listed pending the Panels decision. There can be no assurance that, if the Company does appeal the Staffs delisting determination to the Panel, such appeal would be successful.
The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider available options to regain compliance with the Bid
Price Rule, which could include seeking to effect a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with the Bid Price Rule.