Neptune Wellness Solutions Inc. (Nasdaq: NEPT) (TSX: NEPT) received written notification on Monday from the Nasdaq Stock Market for failing to comply with the minimum bid price requirement. This followed after the company’s closing price on the big board falls short of the US$1.00 threshold.
According to Nasdaq’s listing rules, a failure to meet the minimum bid price requirement is considered when the bid price isn’t maintained at the agreed baseline for 30 consecutive days. From July 16 to August 27, 2021, the company hasn’t closed above the minimum requirement.
The wellness firm will continue to trade on the big board where it is given 180 days to regain compliance, which is defined by trading above the minimum bid price for 10 consecutive days. The company may be eligible for additional time or face delisting from Nasdaq should it fail to push its closing price up within the set guidelines.
While its operations are not affected by the written notification, the Quebec-based company relayed its intention “to monitor the closing bid price of its common shares”. It is also considering implementing measures to regain compliance with the minimum bid price requirement, including a reverse share split of its outstanding common shares.
Neptune Wellness last traded at US$0.65 on the Nasdaq.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.