Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
As previously reported, 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). In accordance with Nasdaq Listing Rule 5810(c)(3)(A) (the
Compliance Period Rule), the Company was provided an initial period of 180 calendar days, or until January 8, 2020, to regain compliance with the Bid Price Rule.
On December 20, 2019, the Company applied to transfer the listing of its stock from the Nasdaq Global Market to the Nasdaq Capital Market. The Nasdaq
Capital Market is a continuous trading market that operates in substantially the same manner as the Nasdaq Global Market and listed companies must meet certain financial requirements and comply with Nasdaqs corporate governance requirements.
On December 27, 2019, Nasdaq approved the Companys transfer application. This transfer will be effective at the opening of business on
December 30, 2019. The Companys common stock will continue to trade under the symbol ALRN. Nasdaq has advised the Company that following the effectiveness of transfer of its listing, the Company will be granted an additional 180-day period, or until July 6, 2020 (the Compliance Date), to regain compliance with 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 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)(F).
If the Company does not regain compliance with the
Bid Price Rule by the Compliance Date, 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 (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 a delisting determination to the Panel, that such appeal would be
successful. The Company has provided written notice of its intention to regain compliance with the Bid Price Rule prior to the Compliance Date by carrying out a reverse stock split, if necessary.