Eyenovia Inc (NASDAQ:EYEN)., a pharmaceutical company with a market capitalization of just $10.56 million, is confronting the prospect of its common stock being delisted from The Nasdaq Capital Market due to non-compliance with the exchange's minimum bid price requirement.
The company received a notification from Nasdaq on December 12, 2024, stating that its stock price had fallen below the threshold of $0.10 for ten consecutive trading days. According to InvestingPro data, the stock currently trades at $0.09, having lost over 95% of its value year-to-date.
The Nasdaq notice follows an earlier warning on September 18, 2024, when Eyenovia's stock price had been below the $1.00 minimum requirement for 30 consecutive business days. The company was initially given until March 17, 2025, to address this issue.
However, the recent decline to $0.10 or less has triggered the application of the Low Priced Stocks Rule, leading Nasdaq to proceed with delisting despite the previously granted grace period. InvestingPro analysis reveals concerning fundamentals, with the company's financial health rated as WEAK and showing signs of rapid cash burn.
Eyenovia intends to appeal the delisting decision by December 19, 2024, with a hearing request that will temporarily halt the suspension of its stock trading. The company plans to present a compliance strategy at the hearing, including a proposed reverse stock split aimed at elevating the stock price above the Nasdaq's minimum bid price.
This proposal is subject to shareholder approval at a Special Meeting scheduled for January 21, 2025. InvestingPro subscribers have access to 15+ additional insights about Eyenovia's financial condition and market position through the comprehensive Pro Research Report.
The outcome of the appeal and the company's ability to regain or maintain compliance with Nasdaq's listing requirements remain uncertain. Eyenovia has cautioned that there can be no assurances of a positive result from the Hearings Panel or the effectiveness of the reverse stock split in resolving the listing deficiencies.
Technical indicators from InvestingPro suggest the stock is currently in oversold territory, though investors should note that the company's short-term obligations exceed its liquid assets.
This report is based on a press release statement and contains forward-looking statements which involve risks and uncertainties.
Eyenovia has stated that it will not provide updates on these forward-looking statements unless required by law.
In other recent news, Eyenovia, Inc. has secured significant funding through direct offerings, raising approximately $1.9 million and $1.3 million respectively.
These funds are earmarked for general corporate purposes, including working capital and further development of its Optejet device and commercialization efforts for products like Mydcombi and clobetasol propionate.
The company has also entered into an agreement with Avenue Capital Management II, L.P. to defer principal and interest payments on its outstanding debt until February 2025.
Despite these efforts, Eyenovia reported a net loss of $7.9 million for Q3 2024, leading H.C. Wainwright and Brookline Capital Markets to downgrade the company's stock rating from Buy to Neutral. Amid these financial challenges, Eyenovia continues to advance its product development, nearing Phase III efficacy data readout for MicroPine, launching MydCombi and Clobetasol, and working on its Gen 2 Optejet device.
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