TEL AVIV - PainReform Ltd. (NASDAQ:PRFX), a clinical-stage pharmaceutical company, disclosed today that it has been notified by the Nasdaq Stock Market of its non-compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market. The company, which specializes in reformulating established therapeutics, has fallen short of the Nasdaq's $2.5 million equity threshold.
The notice from Nasdaq, however, does not immediately affect the trading of PainReform's ordinary shares, which will continue under the ticker PRFX. The company has been given a 45-day period, until December 19, 2024, to submit a plan to regain compliance. If Nasdaq accepts the plan, PainReform could be granted an extension up to May 3, 2025, to meet the listing standards.
PainReform's key product, PRF-110, is an extended-release formula of the local anesthetic ropivacaine, aimed at providing postoperative pain relief. The company's proprietary delivery system is intended to offer prolonged analgesia post-surgery, potentially reducing the need for opioids.
The company's future plans and strategies, as well as the anticipated outcomes of clinical trials for PRF-110, are considered forward-looking statements and are subject to various risks and uncertainties. PainReform has a history of losses and acknowledges the need to secure additional funding to continue operations.
This announcement is based on a press release statement from PainReform Ltd. and reflects the company's current position regarding its Nasdaq listing status and its ongoing product development efforts.
In other recent news, PainReform Ltd. has seen a flurry of activity surrounding its postoperative pain relief product, PRF-110. The company has successfully completed a Phase III study, demonstrating PRF-110's superior effectiveness in post-surgical pain management. There has also been positive early safety data from a Phase 3 study, indicating a low incidence of adverse events. PainReform has also developed new patented formulations of PRF-110, designed to enhance recovery after surgery.
The company has also made financial moves, announcing agreements for the immediate exercise of outstanding warrants to purchase ordinary shares. This is expected to result in the sale of up to 989,300 ordinary shares and the issuance of new unregistered warrants for up to 1,978,600 ordinary shares.
However, PainReform's PRF-110 faces increased competition after the FDA approved the first generic version of Exparel, a leading non-opioid post-operative pain analgesic. Maxim Group adjusted its outlook for PainReform from Buy to Hold in response to this development. Despite the challenges, PainReform continues to focus on its mission to offer a safer and more effective therapeutic option for postoperative pain management.
InvestingPro Insights
PainReform's current financial situation aligns with the Nasdaq notification of non-compliance. According to InvestingPro data, the company's market capitalization stands at a mere $0.68 million, significantly below the Nasdaq's $2.5 million equity requirement. This low valuation is reflected in several InvestingPro Tips, which paint a challenging picture for the company.
One InvestingPro Tip notes that PainReform is "quickly burning through cash," which is particularly concerning given its need to secure additional funding to continue operations. This cash burn is further emphasized by another tip indicating that the company's "short-term obligations exceed liquid assets," highlighting potential liquidity issues.
The company's financial struggles are also evident in its profitability metrics. An InvestingPro Tip reveals that PainReform is "not profitable over the last twelve months," with the data showing a staggering -$17.83 million in adjusted operating income for the last twelve months as of Q2 2024. This lack of profitability is compounded by "weak gross profit margins," as indicated by another InvestingPro Tip.
PainReform's stock performance has been equally concerning. The company has experienced a significant price decline, with a -96.61% year-to-date total return as of the latest data. This aligns with the InvestingPro Tip stating that the "price has fallen significantly over the last year."
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for PainReform, providing a deeper understanding of the company's financial health and market position.
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