Biomerica Inc . (NASDAQ:BMRA), a diagnostic substances manufacturer, has been granted an additional 180 days to meet Nasdaq's minimum bid price requirement, the company disclosed Wednesday. The extension prolongs the period to regain compliance until May 5, 2025.
The Nasdaq Listing Qualifications Department had previously notified Biomerica on May 7, 2024, that its stock had closed below the required $1.00 per share for 32 consecutive business days. This notice indicated non-compliance with Nasdaq's Listing Rule 5550(a)(2), which mandates a minimum bid price of $1.00 per share.
The recent Extension Notice received on November 5, 2024, does not immediately impact the listing of Biomerica's common stock. The company must now work to increase its closing bid price to at least $1.00 per share for a minimum of ten consecutive business days before the May 2025 deadline to regain compliance.
Biomerica is actively monitoring its share price and is considering all available options to address the deficiency and comply with the Nasdaq Listing Rule. If the company fails to achieve compliance within this extended timeframe, Nasdaq will issue a notice of delisting. However, Biomerica would then have the right to appeal the decision to a Nasdaq Hearings Panel.
The Irvine, California-based company, which operates under the SIC category of In Vitro & In Vivo Diagnostic Substances, has not assured that it will be able to meet the compliance requirements within the new deadline.
This announcement is based on a press release statement from Biomerica and underscores the ongoing efforts by the company to maintain its Nasdaq listing status while providing transparency to its stakeholders about its compliance status and future plans.
In other recent news, Biomerica Inc. has received approval from the Saudi Food and Drug Authority (SFDA) for its Fortel® Prostate (PSA) Screening Test. This development marks a significant step in Biomerica's strategic expansion into the Middle East, addressing the rising concern of prostate cancer in the region. The company has shipped its first order of the Fortel® PSA Screening Tests to distributors in Saudi Arabia.
The Fortel® PSA At-Home Screening Test, which offers results within 10 minutes using a simple finger-prick blood sample, has demonstrated high accuracy in studies. In addition, Biomerica has recently announced the immediate resignation of its Board Chairman, Jack Kenny, due to personal reasons, and has not yet named his successor.
Other recent developments include the launch of a pilot program for Biomerica's inFoods IBS product and securing a multi-year exclusive distribution agreement in the United Arab Emirates for its at-home cancer screening products. The company has also expanded into new offices across the United States and secured five new patents for its inFoods technology in Europe, Canada, and Japan.
InvestingPro Insights
Recent InvestingPro data sheds light on Biomerica's financial situation as it faces the challenge of meeting Nasdaq's minimum bid price requirement. The company's market capitalization stands at a modest $6.06 million, reflecting its current struggles. With a price-to-book ratio of 1.12, the stock is trading slightly above its book value, which could be a consideration for value investors.
InvestingPro Tips highlight some of Biomerica's financial challenges. The company is not profitable over the last twelve months and is quickly burning through cash, which may complicate its efforts to boost its share price. On a positive note, Biomerica holds more cash than debt on its balance sheet, potentially providing some financial flexibility as it works towards compliance.
The stock's recent performance shows a strong return over the last three months, with a 21.12% price increase. This upward trend could be beneficial as the company aims to meet the $1.00 per share threshold. However, investors should note that Biomerica does not pay a dividend, which might limit its appeal to income-focused shareholders.
For those interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into Biomerica's financial health and market position.
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