(Alliance News) - Renalytix PLC on Tuesday said a possible suspension of trading in the company's American depositary shares on Nasdaq could impair its ability to raise capital.

Shares in Renalytix fell 17% to 13.50 pence in London on late Tuesday morning.

Renalytix said it had been notified on Friday by the Nasdaq Stock Market LLC that it had failed to regain compliance with listing rules.

As a result, shares were likely to be suspended from July 2.

In December, Renalytix was notified by the Nasdaq that the closing bid price for the ADS did not meet the minimum bid price requirement of Nasdaq listing rules.

Further, Nasdaq told Renalytix it was not in compliance with the requirement to maintain a minimum market value of listed securities of USD50 million for continued listing.

On Tuesday, Renalytix said it intends to submit an appeals hearing request to the Nasdaq Hearings Panel to stay the suspension of the company's securities.

Throughout this process, pending the decision, the company's ADSs will continue trading on Nasdaq, the firm said.

At the hearing, Renalytix intends to present a strategic plan to regain compliance with the applicable listing requirements.

In the interim, the company's ADSs will continue to trade on Nasdaq, it said.

If the ADSs are delisted, it could be more difficult to buy or sell them or to obtain accurate quotations, and the price could suffer a material decline, Renalytix warned.

In addition, Renalytix announced the appointment of CohnReznick LLP as the company's US independent registered public accounting firm for the fiscal year ended June 30, 2024.

CohnReznick will replace Ernst & Young LLP.

Renalytix Chief Executive James McCullough said: "We will continue to look for opportunities to improve cost efficiencies and grow revenue as they become available. We are reducing administrative expenses to allocate more resources into sales and marketing, which is proving effective."

By Jeremy Cutler, Alliance News reporter

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