Quoin Pharmaceuticals Ltd. (NASDAQ:QNRX), a pharmaceutical company, has been granted an additional 180-day period by The Nasdaq Stock Market LLC to comply with its minimum bid price requirement, as per the company's latest SEC filing. The Israel-based company, which specializes in pharmaceutical preparations, was initially notified of its non-compliance with Nasdaq's $1.00 minimum bid price rule on April 29, 2024, and was given until October 28, 2024, to rectify the situation.
Despite efforts, Quoin Pharmaceuticals was unable to raise its share price above the $1.00 threshold for the required ten consecutive business days during the initial 180-day compliance period. In response, the company submitted a request on October 16, 2024, for an additional grace period to meet the requirement.
Nasdaq has agreed to the request, setting a new deadline of April 28, 2025, for Quoin Pharmaceuticals to achieve compliance. The decision was based on the company's compliance with all other Nasdaq Capital Market initial listing standards, except for the minimum bid price. The company has indicated it might consider a reverse stock split to increase its share price if necessary.
Should Quoin Pharmaceuticals fail to meet the minimum bid price by the extended deadline, it may face delisting. However, the company would have the opportunity to appeal this decision and present a plan to regain compliance, which historically has included measures such as a reverse stock split.
The filing indicates that Quoin Pharmaceuticals is monitoring its share price closely and is exploring all available options to regain compliance with Nasdaq's listing requirements. The company's securities continue to be listed and traded on the Nasdaq Capital Market under the symbol "QNRX". This information is based on a press release statement.
In other recent news, Quoin Pharmaceuticals Ltd. has been making significant strides in its operations. The company recently announced the expansion of its Netherton Syndrome clinical trials to include two new sites in the United Kingdom. This move is part of Quoin's strategy to expedite enrollment for the trials evaluating QRX003, a potential treatment for this rare genetic skin condition.
In addition, Quoin has also announced a significant shift in the date for its 2024 Annual General Meeting of Shareholders, now set for December 5, 2024. This change has led to an adjustment of deadlines for shareholder proposals, which must now be received by October 10, 2024.
Furthermore, Quoin's executives have demonstrated their confidence in the company by purchasing substantial amounts of company stock. CEO Michael Myers and COO Denise Carter have acquired significant numbers of American Depositary Shares, signaling their belief in the company's strategic path.
InvestingPro Insights
Quoin Pharmaceuticals' current market situation reflects the challenges highlighted in the article. According to InvestingPro data, the company's market capitalization stands at a modest $4.09 million, with its stock price at $0.81 as of the previous close. This price represents only 12.09% of its 52-week high, underscoring the struggle to meet Nasdaq's minimum bid price requirement.
Despite these challenges, InvestingPro Tips suggest that Quoin's stock is trading below its fair value. The InvestingPro Fair Value is estimated at $0.74, while analyst targets suggest a fair value of $2.00. This discrepancy might indicate potential upside if the company can address its current issues and regain market confidence.
It's worth noting that InvestingPro offers additional tips and insights that could be valuable for investors considering Quoin Pharmaceuticals' future prospects. These insights could provide a more comprehensive view of the company's financial health and market position as it works towards meeting Nasdaq's requirements.
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