Aspira Women's Health Inc., a company specializing in diagnostic substances, received a notice from Nasdaq on Thursday, October 17, 2024, stating that its common stock had not met the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
The share price of Aspira Women's Health, traded under the symbol AWH, has closed below the $1.00 threshold for the past 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
Despite the warning, trading of the company's stock remains unaffected and continues on the Nasdaq Capital Market. Aspira Women's Health has been granted a 180-day period, until April 15, 2025, to rectify the situation and bring the bid price of its common stock back to $1.00 or higher for at least ten consecutive business days.
Should the company fail to achieve compliance within this timeframe, it may be eligible for an additional 180-day period to meet the requirements. However, if Aspira Women's Health does not qualify for the extension, or if it is unable to regain compliance, Nasdaq will proceed with the delisting process. At that point, the company would have the right to appeal the decision before a Nasdaq hearings panel.
The company has expressed its intention to monitor its share price closely and to consider all available options to regain compliance with Nasdaq's minimum bid price rule. Nonetheless, there is no guarantee that Aspira Women's Health will be able to maintain its listing on the Nasdaq Capital Market
In other recent news, Aspira Women's Health delivered a solid performance in its recent quarterly earnings, with OvaSuite revenue hitting $2.4 million, a 13% sequential increase. This growth was largely driven by the OvaWatch ovarian cancer risk assessment blood test, part of the OvaSuite product line. The company has also launched a mass monitoring application for OvaWatch, expanding its potential market.
Cantor Fitzgerald maintained a neutral stance on Aspira, citing the company's need to secure additional funding and the uncertain revenue potential of the new product, OvaWatch. The firm will reassess its position once Aspira addresses its financial position and secures a distribution agreement for OvaWatch.
In recent developments, Aspira has been exploring non-dilutive financing options and has appointed a new interim CFO. The company also announced progress in contracting with Anthem plans and adding Blue Cross Blue Shield and Superior Plan to their coverage.
Despite a quarterly burn rate of $30 million, Aspira has been successful in reducing its cash burn over the past 2.5 years.
InvestingPro Insights
Recent InvestingPro data paints a challenging picture for Aspira Women's Health (AWH), aligning with the company's Nasdaq listing concerns. The company's market capitalization stands at a modest $13.64 million, reflecting its current struggles. AWH's stock has experienced significant declines, with a 75.84% drop over the past six months and an 84.5% fall over the last year, underscoring the severity of its share price issues.
InvestingPro Tips highlight that AWH is "quickly burning through cash" and that "short term obligations exceed liquid assets," which may complicate efforts to address its listing compliance. The company's financial health is further strained by an operating income margin of -194.49% for the last twelve months, indicating substantial operational challenges.
On a slightly positive note, AWH has seen an 11.74% price return over the past week, possibly reflecting market reactions to its plans to address the Nasdaq notice. However, with analysts not anticipating profitability this year and the stock trading at just 14.12% of its 52-week high, the road to recovery appears steep.
For investors seeking a deeper understanding of AWH's situation, InvestingPro offers 11 additional tips, providing a more comprehensive analysis of the company's prospects and challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.