Investing.com -- Virpax Pharmaceuticals Inc . (NASDAQ: VRPX ) shares tumbled by 40.2% as the company faces delisting from The Nasdaq Capital Market. The pharmaceutical firm, with a market capitalization of just $1.18 million, did not meet the minimum stockholders’ equity requirement, leading to the Nasdaq Hearings Panel’s decision to halt trading of the company’s common stock from the start of business on Friday, April 4, 2025.

The delisting action was determined after Virpax Pharmaceuticals failed to regain compliance with Nasdaq Listing Rule 5550(b)(1). The delisting process will conclude with the filing of a Form 25 Notification of Delisting with the Securities and Exchange Commission (SEC) once the appeal period has expired. The company has stated that it will not appeal the Panel’s decision.

In a related development, Virpax Pharmaceuticals announced on April 2, 2025, the immediate resignation of three board members, Esha Randhawa, Charn Deol, and Judy Su, as well as the departure of Usama Chaudhry from his role as Chief Financial Officer. The company clarified that these resignations were not due to disagreements on company operations, policies, or practices, and expressed gratitude to the departing members for their service.

The press release did not provide further details on potential replacements or the company’s strategic plans following these significant changes in its leadership structure.

Investors reacted negatively to the news of delisting and the high-level resignations, reflecting the uncertainty surrounding Virpax Pharmaceuticals’ future. The company’s ability to operate on a major exchange and the sudden change in its executive team have raised concerns about its stability and direction moving forward.

The stock’s sharp decline underscores the challenges Virpax Pharmaceuticals faces as it navigates the consequences of non-compliance with Nasdaq’s requirements and the impact of its leadership reshuffle. The company has yet to announce its next steps to address these issues and restore confidence among its shareholders and potential investors.

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