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Biotricity faces potential nasdaq delisting over share price

EditorLina Guerrero
Published 08/01/2024, 05:20 PM
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REDWOOD CITY, CA – Biotricity Inc., a medical device company, received a notification from the Nasdaq Capital Market on Thursday, July 26, 2024, indicating that the company's stock is not in compliance with the exchange's minimum bid price requirement. The Nasdaq Capital Market requires that the bid price of a company's stock remain at least $1.00 per share, and Biotricity's stock has fallen below this threshold for the past 30 consecutive business days.

This warning does not immediately affect Biotricity's stock listing on the Nasdaq Capital Market. However, the company must boost its stock's closing bid price to $1.00 or higher for at least ten consecutive business days by January 22, 2025, to regain compliance and maintain its listing.

Biotricity has been granted a 180-day period to meet the minimum bid price requirement. If the company fails to comply within this timeframe, it may qualify for an additional 180-day period provided it meets all other listing requirements and notifies Nasdaq of its intent to correct the deficiency, potentially through a reverse stock split.

The company, headquartered at 203 Redwood (NYSE:RWT) Shores Parkway, Suite 600, Redwood City, California, and led by CEO Waqaas Al-Siddiq, is actively monitoring its stock's performance and exploring options to address the compliance issue. Biotricity specializes in surgical and medical instruments and apparatus, as noted in its SEC filing.

In other recent news, Biotricity Inc. has made significant strides in operational improvements and financial growth. Recent developments reveal that the company's proprietary AI Cloud platform has seen efficiency gains of 20%, which are projected to boost the company's topline margin by 200 to 300 basis points in the forthcoming quarters. Biotricity also reported a revenue increase of 25% for the fiscal year 2024, amounting to $12.06 million, and a 15.9% increase in fourth-quarter revenue, reaching $3.2 million.

The company's gross profit for the quarter was reported at $2.3 million, a 48% year-over-year increase, indicating a robust gross margin of 71.5%. Biotricity now expects to reach EBITDA positive status by the end of 2024, thanks to strategic initiatives and technological advancements. The company also announced plans to expand into the pulmonary and neurology fields through strategic partnerships.

Biotricity has also made significant advancements in its Cardiac AI Cloud platform, and has formed strategic partnerships with Amazon (NASDAQ:AMZN) AWS and Google (NASDAQ:GOOGL) TensorFlow. Furthermore, the company has successfully entered the Canadian market following Health Canada's approval of the Biocore device. These recent developments are expected to play a vital role in Biotricity's strategic expansion and projected growth.

InvestingPro Insights

As Biotricity Inc. navigates the challenges of meeting Nasdaq's minimum bid price requirement, a glance at real-time data and insights from InvestingPro can provide investors with a clearer picture of the company's current financial health. With a market capitalization of just over $14 million and a negative price-to-earnings (P/E) ratio, the company's financial metrics underscore the hurdles it faces. The P/E ratio, which is a measure of the company's current share price relative to its per-share earnings, stands at -0.39, reflecting the company's lack of profitability in the recent past.

InvestingPro Tips highlight that Biotricity's stock has experienced a significant decline over various time frames, including a drop of over 10% in the past week alone. The company's short-term obligations also outweigh its liquid assets, which could raise concerns about its financial stability. Furthermore, analysts do not anticipate Biotricity will turn a profit this year, and the stock is trading near its 52-week low. The absence of dividend payments to shareholders may also factor into investor decisions, especially in the context of the company's performance and compliance efforts.

For those looking to delve deeper into Biotricity's financials and future prospects, InvestingPro offers additional tips that could help inform investment decisions. Interested readers can find more detailed analysis and tips on the platform, which currently lists seven more tips for Biotricity Inc. at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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