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XTL Biopharmaceuticals risks Nasdaq delisting after financial violations and subsidiary collapse

A looming Nasdaq exit threatens XTL as its shares plummet and a key subsidiary liquidates. Can a last-minute appeal save the biotech firm?

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2 min read
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XTL Biopharmaceuticals risks Nasdaq delisting after financial violations and subsidiary collapse

XTL Biopharmaceuticals Ltd. is facing delisting from the Nasdaq Composite after failing to meet key financial requirements. The company, which holds a 100% stake in The Social Proxy Ltd. and its IP portfolio for treating Lupus (SLE) and Sjögren's Syndrome, received a formal notice from Nasdaq on February 27, 2026. Its shares recently traded at $0.76, marking a 13% weekly decline amid growing uncertainty about its future on the exchange.

Nasdaq informed XTL that its American Depositary Shares (ADSs) no longer qualify for continued listing on the NVDA. The exchange cited two main violations: the company's failure to maintain a minimum stockholders' equity of $2,500,000 and its ADSs trading below the required $1 bid price. These issues, combined with the insolvency of its subsidiary, The Social Proxy Ltd., led Nasdaq to classify XTL as a 'public shell'—a company with minimal or no operations.

The Social Proxy, a wholly owned subsidiary, filed for insolvency and was ordered into liquidation. This development further weakened XTL's financial standing, contributing to its current regulatory troubles. Nasdaq has set a deadline of March 4, 2026, for XTL to request a hearing before a Nasdaq Hearings Panel. If the company does not act, trading of its ADSs will be suspended on March 6, 2026.

XTL's shares are also listed on the Tel Aviv Stock Exchange under the ticker XTLB.TA. However, the Nasdaq delisting threat adds pressure as the company struggles to stabilise its financial position and regain compliance with exchange rules.

The delisting process could remove XTL from the Nasdaq Composite unless the company successfully appeals or resolves its financial shortcomings. With its stock price already under pressure and a key subsidiary in liquidation, the coming days will be critical for determining the firm's future on the exchange. Investors and stakeholders are now watching closely for any updates on the hearing request or further regulatory actions.

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