ARTELO BIOSCIENCES, INC.

ARTELO BIOSCIENCES, INC. Receives Nasdaq Extension to Address Financial Deficiency

Relevant 8-K Item: Item 3.01. Non-Compliance with Listing Standard

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Event Description (what happened)

ARTELO BIOSCIENCES, INC. (NASDAQ: ARTL), a clinical-stage biotechnology company focused on developing cannabinoid-based therapies for conditions like cancer, pain, and inflammation, recently secured a vital extension for its Nasdaq listing. The Nasdaq Hearings Panel granted ARTELO until March 30, 2026, to regain compliance with Nasdaq's minimum financial health standard, specifically its stockholders' equity requirement. This decision followed a hearing on January 15, 2026, where ARTELO presented its plan to address the financial shortfall.

Nasdaq had previously warned ARTELO of delisting on November 19, 2025, because the company failed to maintain the required $2.5 million in stockholders' equity.

Separately, ARTELO also received a non-compliance notice on January 14, 2026, for not holding its 2025 annual meeting on time. The company quickly resolved this issue by holding the meeting on January 30, 2026.

Event Date/Timeline

• Initial Delisting Warning (Stockholders' Equity): November 19, 2025
• Non-Compliance Notice (Annual Meeting): January 14, 2026
• Nasdaq Hearings Panel Hearing: January 15, 2026
• 2025 Annual Meeting Held: January 30, 2026 (resolving annual meeting non-compliance)
• Compliance Deadline for Stockholders' Equity: March 30, 2026

Impact Assessment (who/what is affected)

This extension significantly impacts both ARTELO and its shareholders.

• For ARTELO (the Company): The extension prevents ARTELO's immediate removal from Nasdaq, preserving its trading accessibility and public profile. It gives the company a defined period to strengthen its financial position and avoid delisting, a move that would severely impact liquidity and investor confidence. However, the core issue of insufficient stockholders' equity remains. ARTELO must successfully execute its plan to meet the Nasdaq threshold by the deadline.
• For Investors: Investors benefit from ARTELO's continued Nasdaq listing, which maintains liquidity and market visibility for their shares. However, they face ongoing risks. These include potential dilution from future capital raises, the inherent risk in executing the company's compliance plan, and uncertainty about ARTELO's ability to achieve full compliance by the March 30, 2026, deadline.

Financial Impact (if applicable)

The main financial impact stems from ARTELO's failure to maintain the required $2.5 million in stockholders' equity. While this filing did not specify the exact current figure, it remains below Nasdaq's threshold.

To address this shortfall, ARTELO must implement strategies to improve its financial position. For biotech companies in this situation, common approaches include:

• Raising Capital: This could involve new equity offerings (e.g., secondary stock sales), which may dilute existing shareholders, or securing debt financing.
• Strategic Partnerships/Licensing Deals: Collaborations that bring in upfront payments or milestone revenues.
• Operational Efficiency: Aggressively managing expenses and focusing resources on key clinical programs with the highest potential.
• Asset Sales: Divesting non-core assets.

Any equity raise to boost stockholders' equity could dilute the ownership stake and value of existing shares. Therefore, the company's ability to secure sufficient funding or generate revenue to improve its equity position by the deadline is critical for its continued Nasdaq listing.

Key Takeaways for Investors

This extension gives ARTELO a vital opportunity to stabilize its financial foundation and continue its mission of developing novel therapies. However, it also places the company under intense scrutiny, demanding clear execution and transparent communication with investors as it works toward full compliance.

Investors should closely monitor:

• Financial Updates: Pay close attention to future SEC filings (10-Q, 10-K, and subsequent 8-K filings) for updates on ARTELO's financial performance, cash position, and any capital-raising activities.
• Strategic Announcements: Look for news regarding new partnerships, clinical trial progress, or significant operational changes that could impact the company's financial outlook.
• Dilution Impact: Be aware that efforts to raise capital through equity could lead to an increase in outstanding shares and potential share price adjustments.
• The Deadline: The March 30, 2026, deadline is critical. The company's ability to demonstrate compliance by this date will be a major determinant of its future on Nasdaq.