IRIDEX Corporation, a provider of innovative medical laser systems, has initiated the process to transfer its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market. This move comes after the company received a notice of non-compliance from Nasdaq on June 27, 2024, due to its market value of listed securities falling below the minimum requirement for continued listing on the Nasdaq Global Market.
For the last 30 consecutive business days, IRIDEX's market value of listed securities was under the $50 million threshold set by Nasdaq's Listing Rule 5450(b)(2)(A). This rule mandates that listed securities maintain a minimum market value to remain on the Nasdaq Global Market. The company's non-compliance was formally acknowledged through a notification from Nasdaq's Listing Qualifications Department.
In response, IRIDEX submitted an online transfer application and paid the necessary fee, aiming to meet the Nasdaq Capital Market's continued listing criteria. The current situation does not affect the trading of IRIDEX's common stock, which continues under the ticker symbol "IRIX."
The transition to the Nasdaq Capital Market is expected to remedy the compliance issue, allowing IRIDEX to maintain its Nasdaq presence. The company's management has expressed its intention to comply with the continued listing requirements and anticipates that the application for transfer will be accepted.
In other recent news, Iridex Corp has been undergoing significant changes and developments. The company has announced the appointment of Patrick Mercer (NASDAQ:MERC) as its President. Mercer, who will retain his role as Chief Operating Officer, will now handle dual responsibilities, a move aimed at enhancing operational efficiency and strategic direction in the company.
Further, Iridex reported a decline in its total revenue to $11.8 million for the first quarter of 2024, a $1.9 million drop from the previous year. Despite this, the company is actively pursuing a strategic review and is in talks with potential parties for transactions. These developments come as Iridex continues to focus on growing its business in the retina and glaucoma markets.
The company has also implemented cost-saving measures to reduce cash burn in the current fiscal year. As part of this, operating expenses have decreased to $7.8 million. Iridex anticipates a lower cash burn in 2024 compared to 2023, with expected quarterly burn rates between $1.5 million and $2 million.
These are the recent developments within Iridex Corp as it navigates the dynamic healthcare market, aiming to enhance shareholder value and manage cash effectively.
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