HOUSTON, TX - CNS Pharmaceuticals (NASDAQ:CNSP), Inc., a biopharmaceutical company, is facing potential delisting from the NASDAQ Capital Market due to non-compliance with the exchange's minimum bid price requirement. The company's common stock has not maintained the necessary closing bid price of $1.00 per share for 30 consecutive business days as mandated by NASDAQ Listing Rule 5550(a)(2).
On September 12, 2024, CNS Pharmaceuticals was notified by NASDAQ about its failure to meet the Minimum Bid Price Requirement. Typically, a company is given a 180-day grace period to regain compliance. However, CNS Pharmaceuticals is not eligible for this period due to previous reverse stock splits that exceed the cumulative ratio allowed under NASDAQ rules.
In response to the notification, CNS Pharmaceuticals has scheduled a hearing with a NASDAQ Hearings Panel for November 5, 2024. The upcoming hearing has postponed any immediate suspension or delisting actions.
The Panel's decision post-hearing will determine if the company will be granted an additional extension to comply with the listing requirements. As of now, there is no certainty that the Panel will allow for such an extension.
CNS Pharmaceuticals, headquartered in Houston, Texas, operates under the trading symbol NASDAQ:CNSP.
This news comes as per the company's recent 8-K filing with the U.S. Securities and Exchange Commission.
In other recent news, CNS Pharmaceuticals has received an upgrade from Maxim Group from Hold to Buy, acknowledging the company's improved financial position and the potential of its treatment for Glioblastoma Multiforme (GBM), Berubicin.
The company has also amended its sales agreement with A.G.P./Alliance Global Partners (NYSE:GLP) to increase the potential sale of its common stock from $5.2 million to $25 million. This move is part of the company's efforts to enhance its capital resources. Furthermore, CNS Pharmaceuticals has acquired an exclusive license for TPI 287, a drug candidate for GBM, with plans to initiate a study in 2025.
InvestingPro Insights
Recent data from InvestingPro sheds light on CNS Pharmaceuticals' financial situation, providing context to its NASDAQ listing challenges. The company's market capitalization stands at a modest $5.04 million, reflecting its current struggles. InvestingPro Tips indicate that CNSP is "quickly burning through cash" and "suffers from weak gross profit margins," which aligns with the company's difficulty in maintaining NASDAQ compliance.
The stock's performance has been particularly troubling, with InvestingPro data showing a staggering 99.85% price decline over the past year. This dramatic drop explains why CNSP is trading well below the $1.00 per share threshold required by NASDAQ. Despite these challenges, the company has seen a significant 27.19% return over the last week, possibly reflecting investor speculation around the upcoming NASDAQ hearing.
InvestingPro Tips also highlight that CNSP "holds more cash than debt on its balance sheet," which could be a positive factor as the company argues its case for continued listing. However, with analysts not anticipating profitability this year and the stock's high price volatility, the road ahead remains uncertain for CNS Pharmaceuticals.
For investors seeking a deeper understanding of CNSP's situation, InvestingPro offers 15 additional tips that could provide valuable insights into the company's prospects and challenges.
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