AI, Biotech Companies at Risk in Nasdaq’s Penny Stock Crackdown

Artificial intelligence and biotech startups are among the smaller businesses vulnerable to a new proposal from Nasdaq Inc. that would kick companies off the exchange more quickly for trading under $1.

Take ENDRA Life Sciences Inc., which is developing medical ultrasound technology to diagnose liver disease. The Ann Arbor, Mich.-based company’s stock traded at more than $100 in December. As of Wednesday, it was trading around 50 cents.

Nasdaq has proposed rules that would speed up the delisting process for many companies like ENDRA whose shares have broken a buck. The proposal, published Aug. 19, is the latest move ...