Tivic Health Systems, Inc. (NASDAQ:TIVC), a medical device company with a market capitalization of just $2.84 million, is facing potential delisting from the Nasdaq Stock Market due to non-compliance with the exchange's minimum bid price requirement. According to InvestingPro data, the stock has lost over 81% of its value in the past year, currently trading at $0.35.
The company, headquartered in Fremont, California, was notified on June 28, 2024, that its common stock had not met the minimum bid price of $1.00 per share for 33 consecutive business days, as required by Nasdaq Marketplace Rule 5550(a)(2).
The company was initially given 180 calendar days, until December 26, 2024, to regain compliance. However, Tivic Health was unable to meet the requirement within this period and did not qualify for a second remediation period due to its failure to comply with the minimum stockholders’ equity initial listing requirement of $4,000,000/$5,000,000 for Nasdaq.
In response, Tivic Health has requested a hearing before a Nasdaq Hearings Panel to address the delisting notice, which automatically stays any delisting actions until the hearing and any potential extension period thereafter. The hearing date has not been disclosed.
Furthermore, the company has scheduled a special meeting of stockholders on January 31, 2025, to vote on a proposed reverse stock split of the company's common stock, with a ratio range from one-for-two (1:2) to one-for-thirty (1:30).
InvestingPro subscribers can access 13 additional key insights about TIVC's financial health and market performance, including detailed analysis of its cash burn rate and growth prospects.
This proposed reverse split aims to increase the per-share price and regain compliance with the Minimum Bid Price Requirement. The board of directors will determine the exact ratio without further stockholder approval if the amendment is adopted.
There is no guarantee that Tivic Health will regain compliance with the Minimum Bid Price Requirement or Nasdaq's other listing standards. The company's future on the Nasdaq Capital Market remains uncertain pending the outcome of the hearing and the effectiveness of the reverse stock split, if approved by stockholders.
This news comes as a significant concern for Tivic Health Systems, which specializes in electromedical and electrotherapeutic apparatus, as continued listing on a major exchange often provides visibility and liquidity for a company's shares.
Recent data shows the stock's high volatility, with a beta of 2.14, though it has shown some positive momentum with a 15.33% return over the past week. The information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Tivic Health Systems Inc. has released a letter to its shareholders, providing updates on the company's status and operations. The letter is an important regulatory disclosure and is not intended for marketing purposes.
It's expected to cover recent developments, future plans, and potentially, financial performance. This communication is part of Tivic Health's ongoing commitment to delivering innovative healthcare solutions and maintaining transparency with its shareholders and the broader investment community.
Analysts foresee a revenue growth of about 3% for the current year for the medical device company, known for its electromedical and electrotherapeutic apparatus. However, the company is not expected to achieve profitability this year. Despite facing challenges with rapid cash burn, the company maintains a strong liquidity position with a current ratio of 5.65.
The cautionary language in the letter regarding forward-looking statements reminds stockholders and investors that such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These are some of the recent developments concerning Tivic Health Systems Inc.
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