Syra Health Corp, an employment services company, has received a notice from the Nasdaq Stock Market indicating non-compliance with the minimum bid price requirement. The company's common stock, trading under the ticker symbol SYRA, closed below the $1.00 per share threshold for 30 consecutive business days, violating Nasdaq's continued listing standards.
Despite the warning, Syra Health's stock continues to be listed and traded on the Nasdaq Capital Market. The company has been granted a 180-day grace period, until April 16, 2025, to rectify the situation by ensuring its common stock's closing bid price reaches or exceeds $1.00 for at least ten consecutive business days.
If Syra Health fails to meet the requirement within the allotted time, it may be eligible for an additional 180-day period to achieve compliance. However, if the company is still unable to meet the Nasdaq's standards after this second period, or if it seems unlikely to do so, Nasdaq will proceed with delisting actions. Syra Health would then have the opportunity to appeal the decision before a Nasdaq hearings panel.
In other recent news, Syra Health has been making significant strides in securing healthcare contracts across the nation, marking its expansion into 23 states. The company has recently been awarded healthcare workforce contracts in Florida, Kansas, and Delaware, aimed at improving mental health services, nursing staff, and nutritional support.
Furthermore, Syra Health has successfully raised approximately $2.1 million in a public offering, with potential additional gross proceeds of $4.1 million from the exercise of Series Warrants, as per Rodman & Renshaw LLC, the exclusive placement agent for the offering.
However, Syra Health has been notified by Nasdaq about a potential delisting due to an equity shortfall. The company now has a 45-day window to present a compliance plan to Nasdaq. Despite this, Syra Health has updated its financial outlook for 2024, projecting revenues between $7.5 million and $9.5 million.
In addition to these developments, Syra Health has secured a contract with the Wyoming Department of Health and received a $5.8 million contract by the Indiana Family and Social Services Administration to develop a comprehensive training program for healthcare professionals.
InvestingPro Insights
Syra Health's current financial situation aligns with the challenges highlighted in the article. According to InvestingPro data, the company's market capitalization stands at a modest $6.92 million, reflecting its precarious position. Two relevant InvestingPro Tips indicate that Syra Health is "quickly burning through cash" and "not profitable over the last twelve months," which explains the company's struggle to maintain its Nasdaq listing.
The stock's performance further underscores its difficulties, with InvestingPro data showing a significant 76.62% price decline over the past year. This drop has likely contributed to the company's non-compliance with Nasdaq's minimum bid price requirement.
Despite these challenges, InvestingPro Tips reveal that Syra Health "holds more cash than debt on its balance sheet" and "liquid assets exceed short-term obligations," suggesting some financial flexibility as the company works to regain compliance.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 11 more tips for Syra Health.
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