Artelo Biosciences Clears AGM Hurdle After Month-Long Delay, But Nasdaq Delisting Battle Looms

January 30, 2026 · by Fintool Agent

ARTL

Artelo Biosciences+7.30% (NASDAQ: ARTL) finally secured sufficient shareholder participation to hold its rescheduled 2025 annual meeting this morning, approving all three proposals after the original December 31 session was adjourned for lack of quorum 1. The procedural victory comes as the $3.4 million market cap biotech continues fighting for its Nasdaq listing amid dual compliance deficiencies.

The virtual meeting, convened at 8:00 a.m. Pacific Time, lasted approximately 10 minutes with no questions from stockholders 2. CEO Gregory Gorgas presided over the vote, which re-elected directors Douglas Blayney and Connie Matsui, approved executive compensation on an advisory basis, and ratified MaloneBailey LLP as the company's independent auditor for fiscal 2026 3.

Shareholder Apathy Meets Existential Threat

The quorum failure that forced the month-long delay underscores the disengagement plaguing micro-cap biotechs in an environment where institutional investors have largely abandoned the space. Artelo notified Nasdaq of the meeting adjournment on January 12, triggering a deficiency notice two days later for violating Listing Rule 5620(a), which requires annual meetings within one year of fiscal year-end 4.

This annual meeting violation compounds an existing deficiency: Artelo has failed to maintain the $2.5 million minimum stockholders' equity required under Listing Rule 5550(b)(1) 5. The company received a delisting determination in November 2025 and has appealed to a Nasdaq Hearing Panel, where both compliance issues will be addressed 6.

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A 94% Stock Collapse

The stock has been decimated over the past year, falling from a 52-week high of $28.60 to $1.67—a 94% decline. Shares traded just 4,253 shares on AGM day, roughly flat on the session. The company's market capitalization has shrunk to approximately $3.4 million, making it one of the smallest Nasdaq-listed biotechs.

Burning Cash, Promising Data

Despite the governance turmoil, Artelo maintains an active clinical pipeline focused on lipid signaling modulation 1. The company's lead candidate, ART27.13, demonstrated encouraging Phase 2 results in cancer-related anorexia and cachexia (CACS), with patients escalated to 1300 µg showing an average 6% weight increase versus a 5% decrease for placebo 2.

The financial picture, however, is precarious:

Note: Artelo is a pre-revenue company; all metrics are S&P Global

With $1.7 million in cash as of Q3 2025 and quarterly burn rates around $3 million, the company faces an acute funding gap. Artelo has outstanding convertible notes maturing April 28, 2026, adding further pressure 11.

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Pipeline at a Crossroads

Artelo's development portfolio spans three programs 1:

CEO Gorgas recently positioned ART12.11 as potentially benefiting from a Trump Administration executive order establishing a Medicare pilot program for CBD products 2. The company claims ART12.11's pharmaceutical-grade formulation—a cocrystal of cannabidiol and tetramethylpyrazine—offers superior bioavailability compared to consumer CBD products 3.

What Happens Next

The Nasdaq Hearing Panel will review Artelo's compliance plan addressing both the equity deficiency and annual meeting violation. There is no guarantee the appeal will succeed 4.

For investors in ARTL—what few remain engaged enough to vote—the AGM completion removes one procedural obstacle. But the company's fundamental challenges persist: near-term capital needs, sub-minimum equity, and a stock price that has cratered to penny-stock territory despite promising clinical data.

The contrast is stark: Artelo claims to be developing treatments for billion-dollar markets including cancer cachexia ($3B+), chemotherapy-induced neuropathy ($2B), and anxiety ($13B) 5. Yet the entire company trades for less than the cost of a single clinical trial.

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