XORTX Faces Nasdaq Compliance Challenge with Stock Price Drop

XORTX Therapeutics Inc. has received a notification from the Nasdaq Stock Market indicating non-compliance with its minimum bid price requirement. The company’s common shares have traded below US$1.00 for a consecutive period of 30 business days, violating Nasdaq Rule 5550(a)(2). As a result, XORTX is currently evaluating its options to regain compliance.

According to the notification from the Nasdaq Listing Qualifications Department, the minimum bid price requirement mandates that shares maintain a bid price of at least US$1.00. The notification does not impact XORTX’s listing on the Nasdaq Capital Market at this time. Under Nasdaq Rule 5810(c)(3)(A), the company has a 180-calendar day window from the notification date to meet compliance standards. During this period, XORTX shares will continue trading on the Nasdaq platform.

Should the company’s shares close at or above US$1.00 for a minimum of 10 consecutive business days before the end of the compliance period, Nasdaq will notify the company that it has achieved compliance. This notification will close the matter regarding the bid price deficiency, provided that XORTX meets other listing requirements.

XORTX is also listed on the TSX Venture Exchange, and the notification from Nasdaq does not affect its compliance status with this exchange. The company is committed to exploring all available options to address the deficiency and restore compliance with Nasdaq Rule 5550(a)(2).

About XORTX Therapeutics Inc.

XORTX Therapeutics, based in Calgary, Alberta, is a late-stage clinical pharmaceutical company focused on developing treatments for progressive kidney disease and gout. The company has three advanced clinical programs in progress: the lead program, XRx-026, targets gout; XRx-008 is aimed at autosomal dominant polycystic kidney disease (ADPKD); and XRx-101 focuses on acute kidney injury associated with respiratory virus infections. Additionally, XORTX is developing XRx-225, a pre-clinical program for Type 2 diabetic nephropathy.

The company is dedicated to advancing therapies to address issues related to purine metabolism and xanthine oxidase, aiming to reduce the production of uric acid. XORTX’s mission is to enhance the quality of life for individuals suffering from gout and other significant health conditions.

For more information about XORTX Therapeutics, visit their official website at www.xortx.com.

Forward-Looking Statements

This announcement includes forward-looking statements that reflect the company’s current expectations, plans, and performance. These statements may relate to financing, expenses, revenues, clinical trial success, and intellectual property protection, among other factors. Such forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those anticipated.

XORTX does not undertake any obligation to publicly update these forward-looking statements unless required by law. Detailed information about potential risks and uncertainties affecting XORTX can be found in the Annual Report on Form 20-F filed with the SEC, which is accessible on the SEC’s website at www.sec.gov and on the Canadian securities regulators’ site at www.sedarplus.ca.

Neither the TSX Venture Exchange nor Nasdaq has approved or disapproved the contents of this announcement.