Seelos Therapeutics, Inc. (NASDAQ:SEEL), a pharmaceutical company, has been granted additional time by the Nasdaq Hearings Panel to meet the exchange's minimum listing requirements, according to a recent 8-K filing with the U.S. Securities and Exchange Commission.
The company had previously been notified by Nasdaq on April 30, 2024, that its common stock had not met the minimum bid price of $1.00 per share for thirty consecutive business days as required by Nasdaq Listing Rule 5550(a)(2). Seelos was given until October 28, 2024, to regain compliance with the bid price requirement.
Additionally, Seelos had been warned on November 2, 2023, about its failure to maintain the minimum market value of listed securities of $35 million, as stipulated by Rule 5550(b)(2). The deadline to comply with this requirement was April 30, 2024.
Following the company's appeal, the Panel has now extended the deadline for compliance with the market value requirement to August 30, 2024, and the bid price requirement to September 30, 2024. These extensions are subject to specific conditions set by the Panel.
In light of these developments, Seelos has expressed its intent to meet the Nasdaq conditions for continued listing. However, there is no guarantee that the company will be able to achieve or maintain compliance with the Nasdaq listing requirements within the extended timeframe.
In other recent news, Seelos Therapeutics has been actively amending its financial agreements and restructuring its stock. The pharmaceutical company recently amended its financial agreement with Lind Global Asset Management V, LLC, modifying the terms of a Convertible Promissory Note. This amendment stipulates that Seelos is not required to maintain a minimum cash balance until October 31, 2024, and Lind Global has agreed to refrain from asserting any Material Adverse Effect claims based on events occurring prior to the amendment.
In another development, Seelos implemented a 1-for-8 reverse stock split, converting every eight existing shares of common stock into one. The reverse stock split does not alter the par value per share but reduces the number of authorized shares from 400 million to 50 million and the number of issued and outstanding shares from approximately 17.4 million to roughly 2.2 million.
Additionally, Seelos Therapeutics has appointed Richard Pascoe as Chairman of the Board of Directors. Pascoe, a board member since 2019, will lead the company's strategic business development discussions and negotiations. The company is currently in active discussions regarding potential partnerships and collaborations in the mental health space. These are all recent developments as Seelos continues to navigate its financial obligations and corporate governance responsibilities.
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