Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
As disclosed on the Companys Current Report on Form 8-K filed with the Securities and
Exchange Commission (the SEC) on March 21, 2019, AVEO Pharmaceuticals, Inc. (the Company) received a deficiency letter on March 18, 2019 from the Listing Qualifications Department (the Staff) of the
Nasdaq Stock Market (Nasdaq) notifying the Company that for the previous 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 Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the Bid Price Rule). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided an initial period of 180 calendar days, or until September 16,
2019 (the Initial Compliance Date), to regain compliance with the Bid Price Rule.
Though the Company will not regain compliance by the
Initial Compliance Date, the Company may be eligible for an additional 180 calendar day compliance period (the Additional Compliance Period) if it meets certain requirements, including the continued listing requirement for the market
value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement.
Under Nasdaq Listing Rule 5505(b)(1)(A), the minimum stockholders equity requirement is $5.0 million (the Stockholders Equity
Requirement). As of June 30, 2019, the Companys total stockholders equity was $1.63 million, as reported in the Companys Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2019 and filed with the SEC on August 8, 2019. On August 1, 2019, the Company earned an upfront payment of $25.0 million from Kyowa Kirin Co., Ltd. (formerly Kirin Brewery Co., Ltd.) in connection with the
transaction described in the Companys Current Report on Form 8-K filed with the SEC on August 1, 2019. As a result of this transaction, the Company believes that it meets the Stockholders
Equity Requirement. The Company expects to report stockholders equity in excess of $5.0 million as of September 30, 2019 in its next Quarterly Report on Form 10-Q. Nasdaq will continue to
monitor the Companys ongoing compliance with the Stockholders Equity Requirement and, if the Company fails to evidence compliance upon filing its Quarterly Report on Form 10-Q for the fiscal
quarter ending September 30, 2019, the Company may be subject to delisting from The Nasdaq Capital Market.
The Company will report the Staffs
determination regarding the Companys eligibility for the Additional Compliance Period by filing an additional Current Report on Form 8-K upon Nasdaqs notification to the Company.