CHICAGO - Cosmos Health Inc. (NASDAQ:COSM), a global healthcare group, has been issued an additional delinquency letter from Nasdaq for not filing its quarterly report on time. The letter, received on May 21, 2024, follows an initial notification on April 17, 2024, concerning the company's delay in submitting its annual report for the year ended December 31, 2023.
The recent notice from The Nasdaq Stock Market LLC indicates that Cosmos Health continues to violate Nasdaq's Listing Rule 5250(c)(1), which requires timely financial filings. Despite the delinquency, there is no immediate impact on the trading of the company's shares on the Nasdaq exchange.
Cosmos Health's CEO, Greg Siokas, confirmed the company's intent to address the compliance issue, stating, "We will submit a definitive plan to Nasdaq on a timely basis and proceed to regain compliance." The company has until June 17, 2024, to present a plan to Nasdaq. If approved, Nasdaq may grant an extension until October 14, 2024, for Cosmos Health to rectify its filing status.
Cosmos Health, established in 2009, is a diversified entity that owns proprietary pharmaceutical and nutraceutical brands and operates a telehealth platform. Its subsidiary, Cana Laboratories S.A., manufactures a variety of healthcare products within the European Union. The company also distributes pharmaceuticals and parapharmaceuticals through its networks in Greece and the UK.
The company's forward-looking statements, as stated in the press release, are subject to various risks, including the ability to secure enough funding to execute its business plan and the potential impacts of the COVID-19 pandemic and the conflict in Ukraine on its operations.
The information regarding Cosmos Health's compliance status with Nasdaq listing requirements and the company's response is based on a press release statement.
InvestingPro Insights
As Cosmos Health Inc. (NASDAQ:COSM) navigates through its compliance challenges with Nasdaq, the company's financial health is a key factor for investors to consider. According to InvestingPro data, Cosmos Health's market capitalization stands at a modest $11.52 million, reflecting the size of the company in the healthcare sector. The firm's Price / Book ratio as of the last twelve months leading up to Q3 2023 is 0.26, indicating that the stock may be undervalued relative to its net asset value. However, the company's revenue has declined by 8.97% over the same period, which may raise concerns about its growth trajectory.
In terms of liquidity, Cosmos Health's liquid assets exceed its short-term obligations, which may provide some comfort to investors worried about the company's ability to meet its immediate financial liabilities. Despite this, the firm's gross profit margin stands at 7.17%, suggesting that it suffers from weak gross profit margins, a point that is underscored by one of the InvestingPro Tips.
Investors should also be aware that Cosmos Health does not pay a dividend to shareholders, which could influence the investment decisions of those seeking regular income streams. Additionally, the company has experienced a strong return of 34.1% over the last month, yet it's important to note the volatility in the stock price, as the company has also seen a significant price drop of 78.36% over the last year.
For those considering an investment in Cosmos Health, there are 12 additional InvestingPro Tips available, which provide deeper insights into the company's financial health and market performance. These tips can be accessed on the InvestingPro platform, and users can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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