Lipella Pharmaceuticals Delisted from Nasdaq over Rule Violations

Lipella Pharmaceuticals Inc., a clinical-stage biotechnology company, was delisted from the Nasdaq Capital Market due to violations related to private placement transactions between December 2024 and March 2025, which breached rules on public interest, shareholder approval, and voting rights. The Nasdaq Hearings Panel specifically cited the issuance of Series C voting convertible preferred stock and warrants to the company's placement agent and advisor as improperly structured. Following the delisting, Lipella's stock plummeted and trading was suspended before resuming on the OTC Markets under the ticker "LIPO." Despite the setback, CEO Dr. Jonathan Kaufman emphasized the company's operational soundness and ongoing commitment to advancing its lead therapies for hemorrhagic cystitis and oral lichen planus, while actively seeking alternative markets for relisting to improve liquidity and investor access. Financially, the company maintains strong liquidity and cash positions but continues to report net losses as it invests in clinical development. Institutional ownership remains limited, reflecting its status as an emerging biotech focused on unmet medical needs.