BIOLASE, Inc. Granted Extension by Nasdaq to Regain Compliance with the Stockholders' Equity Continued Listing Requirement

Rhea-AI Summary

BIOLASE, Inc. (NASDAQ:BIOL) has been granted an extension by Nasdaq to regain compliance with Listing Rule 5550(b) by raising approximately $6.5 million through a public offering. Failure to comply by March 31, 2024, may lead to delisting.

Insights

Financial Analyst

The extension granted by Nasdaq for BIOLASE, Inc. to regain compliance with Listing Rule 5550(b) is a critical lifeline for the company. The stipulation to close a public offering that aims to raise approximately $6.5 million in equity capital indicates a proactive approach to address the compliance issue. The potential benefits of this capital infusion include strengthening the company's balance sheet, which could improve investor confidence and provide the necessary funds for operational and strategic initiatives.

However, the risk of delisting remains a significant concern. If BIOLASE fails to meet the March 31, 2024, deadline, the repercussions could include reduced liquidity of its stock, limited access to capital markets and a potential decline in share price. Investors should closely monitor the company's ability to close the public offering and its subsequent financial health.

Market Research Analyst

BIOLASE's situation underscores the importance of meeting Nasdaq's minimum equity requirements, which serve as a benchmark for financial stability and market credibility. The company's positioning as a global leader in dental lasers suggests that maintaining its listing status is vital for its competitive edge. The successful closure of the public offering could signal to the market that BIOLASE has a viable path forward, potentially attracting new investors and partnerships.

In the dental laser industry, where technological advancement and market penetration are key, the ability to raise capital is crucial. BIOLASE's compliance with the Rule could reinforce its industry standing and enable further investment in R&D, marketing and sales efforts to drive growth. Stakeholders should consider the strategic implications of the public offering's outcome on the company's market share and industry influence.

Legal Expert

From a legal standpoint, the notice from Nasdaq's Listing Qualifications Department and the conditional extension granted to BIOLASE reflect the regulatory framework that listed companies must navigate. The structured compliance plan and the clear conditions set forth by Nasdaq demonstrate the exchange's role in enforcing financial standards to protect investors and maintain market integrity.

BIOLASE's ability to appeal a potential delisting to a Hearings Panel introduces a legal recourse that could extend the timeline and offer the company a platform to argue its case. However, this process can also entail legal costs and uncertainty, further emphasizing the importance of meeting Nasdaq's conditions to avoid such complications.

LAKE FOREST, CA / ACCESSWIRE / February 14, 2024 / BIOLASE, Inc. (NASDAQ:BIOL), the global leader in dental lasers, today announced that it received notice from the Staff of the Listing Qualifications Department (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq") that the Staff has determined to grant the Company an extension of time to regain compliance with Listing Rule 5550(b) (the "Rule"). The Rule requires a minimum of $2,500,000 stockholders' equity, $35,000,000 market value of listed securities, or $500,000 net income from continuing operations.

On December 22, 2023, as supplemented on January 22, 2024, the Company submitted its plan of compliance to the Staff. On February 13, 2024, the Staff provided notice to the Company that the Staff had granted an extension to regain compliance with the Rule, conditioned upon the Company no later than March 31, 2024, closing a public offering that will raise approximately $6.5 million in equity capital and evidencing compliance with the Rule. As previously reported, the Company announced the pricing of a public offering of approximately $7.0 million, which is expected to close on February 15, 2024, subject to customary closing conditions.

In the event the Company fails to evidence compliance with the Rule upon the filing of its periodic report for the period ending March 31, 2024, with the SEC and Nasdaq, the Company may be subject to delisting. In the event the Company does not satisfy these terms, the Staff will provide written notification that its securities will be delisted. At that time, the Company may appeal the Staff's determination to a Hearings Panel.

About BIOLASE

BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine. BIOLASE's products advance the practice of dentistry and medicine for patients and healthcare professionals. As of December 31, 2023, BIOLASE's proprietary laser products incorporate approximately 241 patented and 21 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. BIOLASE's innovative products provide cutting-edge technology at competitive prices to deliver superior results for dentists and patients. BIOLASE's principal products are dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. From 1998 through December 31, 2023, BIOLASE has sold over 47,700 laser systems in over 80 countries around the world. Laser products under development address BIOLASE's core dental market and other adjacent medical and consumer applications.

BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.

Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. The forward-looking statements include statements regarding the expected closing of the offering. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE's current expectations and speak only as of the date of this release. Actual results may differ materially from BIOLASE's current expectations depending upon a number of factors. These factors include, among others, those risks and uncertainties that are described in the "Risk Factors" section of BIOLASE's Annual Report filed on Form 10-K filed with the SEC and other filings by BIOLASE with the SEC. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.

Investor Relations:

EVC Group LLC
Michael Polyviou / Todd Kehrli
(732) 933-2754
mpolyviou@evcgroup.com / tkehrli@evcgroup.com

SOURCE: BIOLASE, Inc.

View the original press release on accesswire.com

FAQ

What is the Listing Rule 5550(b) that BIOLASE needs to comply with?

BIOLASE needs to meet a minimum of $2,500,000 stockholders' equity, $35,000,000 market value of listed securities, or $500,000 net income from continuing operations to comply with Listing Rule 5550(b).

What is the deadline for BIOLASE to regain compliance with the Rule?

BIOLASE must close a public offering that will raise approximately $6.5 million in equity capital and demonstrate compliance with the Rule by March 31, 2024, to avoid delisting.

What happens if BIOLASE fails to evidence compliance with the Rule by March 31, 2024?

If BIOLASE fails to comply with the Rule by March 31, 2024, it may face delisting from Nasdaq, which could impact its stock performance.