NEWTOWN, PA – Helius Medical Technologies (NASDAQ:HSDT), Inc., a company specializing in electromedical apparatus, received notification from the Nasdaq Stock Market LLC on Thursday, indicating a risk of being delisted. The notice was due to the company's Class A common stock closing bid price falling below the required minimum of $1.00 for 30 consecutive business days.
The Nasdaq's minimum bid price rule is a standard measure to maintain the quality of the market and ensure a degree of liquidity for traded securities. Helius Medical, which trades under the ticker NASDAQ:HSDT, now has 180 calendar days, until February 5, 2025, to address the issue and raise its share price above the $1.00 threshold for at least 10 consecutive business days.
Should Helius Medical fail to meet this requirement by the deadline, it may be granted an additional 180 days if it meets all other listing standards, except for the bid price, and signals its intent to rectify the bid price shortfall. If the company does not achieve compliance within the given timeframe, it may be subject to delisting procedures, although it would have the right to appeal the decision before a Nasdaq hearings panel.
The company has stated its intention to actively monitor its share price and explore available options to regain compliance with the Nasdaq's minimum bid price requirement. However, there is no guarantee that Helius Medical will be able to correct the deficiency within the initial 180-day period or secure an extension.
This development is significant for investors and stakeholders of Helius Medical Technologies, as continued listing on the Nasdaq is crucial for maintaining investor confidence and access to capital markets. The information in this article is based on a press release statement from Helius Medical Technologies' SEC filing.
In other recent news, Helius Medical Technologies, Inc. has been making significant strides in its operations. The company reported a slight increase in revenue to $135,000 for the first quarter, alongside an operating loss of $3.4 million. This comes after securing $6.4 million in financing, which ensures operational sustainability into 2025.
Helius Medical has outlined its strategic focus on obtaining FDA approval for stroke treatment and securing reimbursement for its Portable Neuromodulation Stimulator (PoNS) device. The company is expecting a revenue boost following the anticipated CMS reimbursement by October 1st.
In addition, Helius Medical has initiated partnerships to expand the reach of PoNS, including a significant collaboration with the Department of Veterans Affairs. Analysts from various firms have noted these developments, highlighting their potential impact on the firm's financial trajectory.
Lastly, following shareholder approval, the company has expanded its equity incentive plan, allowing for an additional 2,089,000 shares to be issued. These recent developments underline Helius Medical's commitment to growth and innovation in the medical technology sector.
InvestingPro Insights
In light of Helius Medical Technologies' recent notification from Nasdaq regarding potential delisting, investors may find the following real-time data and InvestingPro Tips pertinent. The company currently holds a market capitalization of just $2.19 million, with a negative P/E ratio reflecting its financial challenges. Despite a revenue growth of 21.62% in the most recent quarter, the company's overall revenue for the last twelve months has decreased by 5.65%, indicating some volatility in its financial performance.
Two InvestingPro Tips that are particularly relevant to Helius Medical's situation include: the company's cash reserves exceeding its debt, which could provide some financial flexibility in addressing the Nasdaq's concerns, and the significant return over the last week, which may suggest a potential positive investor sentiment in the short term. However, it's important to note that analysts do not anticipate the company to be profitable this year, and the stock price has been quite volatile.
For investors considering Helius Medical Technologies as an investment opportunity or for current stakeholders monitoring the situation, these insights and additional tips available on InvestingPro (https://www.investing.com/pro/HSDT) may provide a deeper understanding of the company's financial health and market position. There are 15 additional InvestingPro Tips that further detail Helius Medical's financial metrics and stock performance trends.
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