GBIM Globelmmune Inc (CE)

(a)

On May 18, 2016, GlobeImmune, Inc. (“GlobeImmune”) received a notice (the “Notice”) from the Nasdaq Stock Market (“NASDAQ”) indicating that GlobeImmune’s common stock (“Common Stock”) no longer meets the continued listing requirement as set forth in NASDAQ Rule 5550(b)(1) based on GlobeImmune’s reported stockholders’ equity as reported in GlobeImmune’s Quarterly Report on Form 10-Q for the period ended March 31, 2016. The minimum stockholders’ equity required for continued listing is $2.5 million. GlobeImmune also does not meet the alternatives for market value of listed securities or net income from continuing operations under NASDAQ Rule 5550(b)(1).

Under NASDAQ Rule 5810(c)(2), GlobeImmune may submit a plan to regain compliance with NASDAQ Rule 5550(b)(1) within 45 calendar days of the date of the Notice. GlobeImmune currently anticipates submitting such a plan to NASDAQ. If NASDAQ accepts GlobeImmune’s plan, then NASDAQ may grant GlobeImmune a 180 calendar day extension from the date of the Notice to regain compliance by meeting the continued listing standard. If GlobeImmune is not granted an extension or is unable to regain compliance during the 180 calendar day extension period, if granted by NASDAQ, and receives a delisting determination from NASDAQ it may, at that time, request a hearing to remain on The NASDAQ Capital Market, which request will ordinarily suspend such delisting determination until a decision by NASDAQ subsequent to the hearing.

There can be no assurance that GlobeImmune will be successful in receiving a 180 calendar day extension for compliance from NASDAQ or in maintaining its listing of the Common Stock on The NASDAQ Capital Market. This could impair the liquidity and market price of the Common Stock. In addition, the delisting of the Common Stock from a national exchange could materially and adversely affect GlobeImmune’s access to capital markets, and any limitation on market liquidity or reduction in the price of the Common Stock as a result of that delisting could adversely affect GlobeImmune’s ability to raise capital on terms acceptable to GlobeImmune, or at all.