HOUSTON – Nutex Health Inc. (NASDAQ: NUTX), a healthcare company operating micro-hospitals and physician networks, has been notified by Nasdaq of a possible delisting due to non-compliance with the exchange's minimum bid price requirement. The company's stock is at risk of being suspended from trading on May 30, 2024, unless Nutex Health successfully appeals the decision.
The notification, received on May 21, 2024, highlighted that Nutex Health's common stock had not met the $1.00 minimum bid price as stipulated by Nasdaq's Listing Rule 5550(a)(2). In response, Nutex Health requested a hearing on May 23, 2024, to appeal the delisting determination. Nasdaq has since stayed the delisting action pending the outcome of the hearing, which is scheduled for July 9, 2024.
To address the issue, Nutex Health's Board of Directors approved a reverse stock split on April 24, 2024, with a ratio ranging from 1-for-2 to 1-for-16, subject to shareholder approval at the annual meeting on June 17, 2024. The company aims to execute the reverse stock split promptly after the meeting to regain compliance with the minimum bid price requirement.
During the appeal process, Nutex Health's common stock will continue to trade on Nasdaq. It is important to note that there is no guarantee the company will regain compliance or receive a favorable ruling from the panel.
Nutex Health, founded in 2011 and headquartered in Houston, Texas, manages 21 healthcare facilities across nine states and operates a cloud-based technology platform for healthcare management. The company's current situation underscores the volatility and regulatory challenges faced by healthcare companies in the stock market.
This news is based on a press release statement from Nutex Health Inc. and reflects the company's current predicament with Nasdaq's listing requirements. Investors and stakeholders are advised to follow the developments closely as the company navigates through this regulatory challenge.
InvestingPro Insights
In light of Nutex Health Inc.'s (NASDAQ: NUTX) recent notification of a potential delisting by Nasdaq, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro, Nutex Health operates with a significant debt burden and analysts do not anticipate the company will be profitable this year. Moreover, the company has not been profitable over the last twelve months, adding to the concerns about its long-term financial stability.
Examining the real-time data from InvestingPro, Nutex Health's market capitalization stands at a modest 36.79 million USD. The company's Price/Earnings (P/E) ratio is currently negative at -0.75, reflecting market skepticism about its earnings potential. Additionally, the stock has experienced a steep decline, with a 1 Year Price Total Return of -89.91%, indicating significant investor caution.
Despite the challenges, Nutex Health has shown a robust revenue growth of 31.69% over the last twelve months as of Q1 2024. This suggests that while profitability remains elusive, the company is expanding its top-line results. However, with the stock trading at a high EBITDA valuation multiple, investors may be weighing the company's growth prospects against its current valuation.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics that could be crucial for making an informed investment decision. There are 10 more InvestingPro Tips available for Nutex Health at https://www.investing.com/pro/NUTX. As an exclusive offer, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to comprehensive investment tools and data.
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