On Monday, the share price of 60 Degrees Pharmaceuticals (NASDAQ: SXTP) plummeted, with intraday losses exceeding 20%, mainly due to recent developments concerning the "Nasdaq delisting initiation."
Origin of the Delisting Decision: Minimum Bid Price Rule Triggered
In its latest disclosure, the company stated that on January 20, 2026, it received a written notice from the Nasdaq Listing Qualifications Department that Nasdaq staff had decided to delist the company's common stock and related warrants from the Nasdaq Capital Market.
The trigger point is the Minimum Bid Price: the company's common stock failed to maintain the minimum bid price requirement of $1.00 per share for 30 consecutive trading days, and thus it was deemed non-compliant with the continued listing standards.
Why No Remediation Period: Reverse Stock Split Conducted Within a Year
Usually, companies receiving a notice of non-compliance with the minimum bid price might be granted a compliance period to restore eligibility through price recovery. However, Nasdaq staff determined that 60 Degrees Pharmaceuticals is not eligible for any compliance period because the company conducted a reverse stock split within the previous year—disclosures indicate it completed a 1-for-5 reverse stock split on February 24, 2025, hence facing the path of "immediate delisting."
Warrants Also Affected: Difficult for Derivatives to Survive Independently if Underlying Securities Are Delisted
In addition to common stock, the company's warrants are also included in the delisting scope. The company explained in the documents that the warrants face the same fate because Nasdaq rules require their underlying securities to remain listed on Nasdaq; when common stock is initiated for delisting, the warrants are also simultaneously impacted.
Next Steps for the Company: Hearing Fee Paid, Appeal Can Temporarily Delay Key Procedures
In response to the delisting decision, the company has opted for an appeal: disclosures indicate that it has paid a $20,000 hearing fee and requested a hearing from Nasdaq. The direct impact of this action is that— until the hearing panel makes a decision, related procedures such as trading suspension and submitting Form 25 (delisting notification) will be temporarily delayed. The company also cautioned that the outcome of the hearing remains uncertain, with no guarantee of approval to continue listing.
From a rules perspective, if the Form 25 submission process is formally entered in the future, exchange delisting usually becomes effective after a period post-submission (the common public guideline is 10 days).
Market Focus: Timeline and "Liquidity Discount"
For investors, the more crucial variables ahead lie in the decision pace of the hearing panel and whether the company can propose a viable continued listing plan. If delisting eventually happens, the change of trading venue often causes liquidity decline, widened spreads, and valuation discounts as chain reactions; if the hearing is favorable, short-term sentiment may also see improvement.
