Vaccinex, Inc. (NASDAQ:VCNX) shares are trading lower after the company announced it received a delisting notification from the Nasdaq. Here's what you need to know.

What To Know: Vaccinex disclosed that it received written notice from Nasdaq's Office of General Counsel on Dec. 16, stating that the Nasdaq Hearings Panel determined to delist the company's shares due to noncompliance with the Nasdaq's continued listing standards.

Specifically, Vaccinex has failed to meet the requirement under Nasdaq Listing Rule 5550(b)(1), which requires listed companies to maintain a minimum of $2.5 million in stockholders' equity.

Trading of Vaccinex's common stock on the Nasdaq will be suspended, effective at the open of trading on Wednesday. Following the Nasdaq listing suspension, the company expects its common stock to trade on OTC Markets under the existing ticker symbol "VCNX."

Vaccinex is a clinical-stage biotechnology company focused on developing treatments for neurodegenerative diseases and cancer by targeting semaphorin 4D (SEMA4D). Its lead drug candidate, pepinemab, is designed to block SEMA4D to reduce inflammation and immune suppression.

The drug has been studied in Alzheimer's disease, Huntington's disease and various oncology indications, including head and neck cancer and pancreatic adenocarcinoma, in combination with other therapies.

VCNX Price Action: Vaccinex shares were down 61.1% at $1.42 at the time of publication, according to Benzinga Pro.