NESS ZIONA, Israel - Sol-Gel Technologies Ltd. (NASDAQ: NASDAQ:SLGL), a dermatology-focused pharmaceutical company, has received a notification from the Nasdaq Stock Market LLC indicating non-compliance with the minimum bid price rule. The company's shares have traded below the required $1 threshold for 33 consecutive business days, triggering a warning from the exchange.
The notice, dated May 21, 2024, does not immediately affect the trading of Sol-Gel's ordinary shares, which continue to be listed on the Nasdaq Global Market under the ticker "SLGL." However, the company must boost its share price to meet the minimum bid requirement within 180 days, by November 18, 2024, to avoid potential delisting.
Sol-Gel has the opportunity to regain compliance if its share price closes at $1.00 or higher for at least 10 consecutive trading days before the deadline. Should the company fail to meet this criterion, it may be granted an additional 180 days to comply, provided it satisfies all other initial listing standards for the Nasdaq Capital Market, except for the bid price.
The company, known for developing and commercializing dermatological treatments, has two FDA-approved products in the U.S. market: TWYNEO® for acne vulgaris and EPSOLAY® for inflammatory lesions of rosacea. Both are licensed to Galderma for commercialization in the U.S. and to Searchlight in Canada. Additionally, TWYNEO® has been licensed to Beimei Pharma for markets including China and Israel.
In its pipeline, Sol-Gel is conducting a Phase 3 clinical trial for SGT-610 (patidegib gel, 2%) as a potential treatment for Gorlin syndrome and researching SGT-210 for rare hyper-keratinization disorders.
The company has stated its intent to actively monitor its share price and consider all options to resolve the deficiency and regain compliance with Nasdaq's listing rules. This announcement is based on a press release statement from Sol-Gel Technologies.
InvestingPro Insights
As Sol-Gel Technologies Ltd. (NASDAQ: SLGL) faces the challenge of maintaining Nasdaq compliance, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Sol-Gel's market capitalization stands at a modest $22.29 million, reflecting the scale of the company within the pharmaceutical industry. The stock's previous close was at $0.8, significantly below the Nasdaq's minimum bid price requirement.
Notably, Sol-Gel's price has experienced a substantial decline over the past year, with a -77.78% one-year price total return. This trend underscores the urgency for the company to address the Nasdaq's concerns and potentially explore strategic initiatives to enhance shareholder value.
With current revenue figures at $1.72 million for the last twelve months as of Q1 2024 and a stark revenue growth decrease of -62.92%, the financial trajectory suggests that investors may be cautious about the company's near-term prospects.
Amidst these challenges, InvestingPro Tips reveal that Sol-Gel holds more cash than debt on its balance sheet and that analysts anticipate sales growth in the current year. These insights may offer a glimmer of hope for the company's ability to navigate through its current difficulties. Still, it is important to note that analysts do not expect the company to be profitable this year, and Sol-Gel's valuation implies a poor free cash flow yield.
For investors seeking a deeper dive into Sol-Gel's financials and future outlook, InvestingPro offers additional tips, with a total of 10 tips available including those mentioned above. By using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to valuable insights that could inform investment decisions.
As Sol-Gel continues to develop its dermatological treatments and pursue regulatory approvals, the company's ability to improve its financial metrics and stock performance will be critical in the coming months. With the November 18, 2024, deadline to meet Nasdaq's minimum bid price requirement, all eyes will be on Sol-Gel's strategic moves to regain compliance and bolster investor confidence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.