HOUSTON, TX – Nexalin Technology, Inc. (NASDAQ:NXL), a company specializing in electromedical and electrotherapeutic apparatus, has announced that it believes it has regained compliance with Nasdaq's stockholders’ equity requirements. This follows a recent public offering that raised approximately $5.25 million.
On May 16, 2024, Nexalin received a notice from Nasdaq indicating that the company's stockholders' equity, as reported in its quarterly report for the period ending March 31, 2024, was below the minimum $2.5 million threshold required for continued listing on the Nasdaq Capital Market. The reported stockholders' equity at the time was $2,326,987.
In response to the Notice, Nexalin had 45 days to submit a plan to regain compliance. The company acted by submitting a plan to Nasdaq on July 1, 2024, and subsequently announced the completion of a public offering of 3 million shares of its common stock, resulting in gross proceeds of around $5.25 million.
The successful offering has increased the company's stockholders' equity to a level that Nexalin believes meets Nasdaq's requirement. While Nasdaq will continue to monitor the company's compliance, Nexalin expects that it will maintain the necessary stockholders’ equity level at its next periodic report under the Securities Exchange Act of 1934.
The company's CEO, Mark White, signed off on the report filed today, July 16, 2024, confirming the above events and the company's current compliance status.
This news comes as a positive step for Nexalin Technology, which operates under the organization name 08 Industrial Applications and Services and is incorporated in Delaware. The company's business address and contact information remain unchanged in Houston, Texas.
In other recent news, Nexalin Technology, Inc., a firm specializing in non-invasive neurostimulation technology, has regained compliance with the Nasdaq's minimum bid price requirement. This noteworthy development was confirmed by the Nasdaq Stock Market, indicating Nexalin's adherence to the Nasdaq Rule 5550(a)(2) standards. CEO Mark White highlighted the importance of this milestone in enhancing the company's visibility within the investment community and expressed gratitude to the shareholders for their continued support.
Nexalin has been making strides in mental health treatment through its bioelectronic medical technology. The company's offerings, such as the Gen-2 15 milliamp neurostimulation device, recently approved in Oman and China, aim to effectively target deep structures in the mid-brain associated with mental health disorders. These recent developments underscore the company's commitment to advancing the treatment of mental health and neurological conditions with its innovative, non-invasive technology.
InvestingPro Insights
As Nexalin Technology, Inc. (NASDAQ:NXL) navigates the challenges of meeting Nasdaq's stockholders’ equity requirements, investors can gain additional perspective by considering some key financial metrics and insights. According to real-time data from InvestingPro, Nexalin's Market Cap stands at a modest $15.14M, reflecting the scale of the company within the electromedical apparatus industry. Despite a significant revenue decline over the last twelve months, with a decrease of 84.56%, the company has shown a remarkable quarterly revenue growth of 157.43%. This could indicate a potential turnaround or a positive response to recent strategic initiatives.
InvestingPro Tips reveal that Nexalin holds more cash than debt on its balance sheet, which can be a reassuring sign for investors looking for financial stability. Additionally, while the stock has experienced a considerable hit over the last week, it has also provided a strong return over the last year. These mixed signals highlight the stock's high price volatility, a characteristic that risk-tolerant investors might find appealing.
For those looking to delve deeper into Nexalin's financials and stock performance, InvestingPro offers a wealth of additional tips. There are 11 more InvestingPro Tips available, which could help investors make a more informed decision on whether Nexalin fits into their investment strategy. To access these tips and gain a comprehensive understanding of Nexalin's financial health, visit https://www.investing.com/pro/NXL and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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