LumiraDx Announces Receipt of Nasdaq Notification Letter Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

LumiraDx Limited (Nasdaq: LMDX) announced it has received a notification from Nasdaq for failing to meet the minimum bid price requirement of $1.00 per share for 30 consecutive trading days. Nasdaq Rule 5810(c)(3)(A) grants the company 180 days, until July 26, 2023, to regain compliance. If the share price returns to $1.00 or higher for 10 consecutive business days within this period, compliance will be restored. The company plans to monitor its share price and evaluate options for compliance. LumiraDx specializes in point-of-care diagnostics and has over 30 assays addressing various health conditions.

Positive

• The company has 180 days to regain compliance with Nasdaq rules, providing time for recovery.
• LumiraDx offers more than 30 assays and supports high-complexity lab testing, indicating a robust product pipeline.

Negative

• Current share price has been below $1.00 for 30 consecutive days, raising concerns about potential delisting.
• Failure to regain compliance by July 26, 2023, may lead to delisting from Nasdaq.

LONDON, Jan. 31, 2023 (GLOBE NEWSWIRE) -- LumiraDx Limited (Nasdaq: LMDX)(the “Company”) today announced that it has received notification (the “Notification”) from The Nasdaq Stock Market LLC that it is not in compliance with the minimum bid price requirement in Nasdaq Listing Rule 5450(a)(1) for continued listing on the Nasdaq Global Market, since the closing bid price for the Company’s common shares on the Nasdaq Global Market was below US$1.00 for 30 consecutive trading days. Nasdaq Listing Rule 5450(a)(1) requires the common shares to maintain a minimum bid price of US$1.00 per share (the “Minimum Bid Requirement”), and Nasdaq Listing Rule 5810(c)(3)(A) provides that failure to meet such requirement exists if the deficiency continues for a period of 30 consecutive business days.

The Notification has no immediate effect on the listing of the Company’s common shares on the Nasdaq Global Market. Under Nasdaq Listing Rule 5810(c)(3)(A), the Company has a period of 180 calendar days from the date of Notification, which was January 27, 2023, to regain compliance with the Minimum Bid Requirement, during which time the common shares will continue to trade on the Nasdaq Global Market. If at any time before July 26, 2023, the bid price of the common shares closes at or above US$1.00 per share for a minimum of 10 consecutive business days, the Company will regain compliance with the Minimum Bid Requirement. In the event the Company does not regain compliance with the Minimum Bid Requirement by July 26, 2023, the Company may be eligible for an additional period of 180 calendar days to regain compliance or may be subject to delisting of the common shares from the Nasdaq Global Market.

To address the issue, the Company will continuously monitor the closing bid price of its common shares between now and July 26, 2023, and will evaluate its options to regain compliance with Nasdaq Listing Rule 5450(a)(1) before such date. The Company anticipates resolving the deficiency within the compliance period.

About LumiraDx

LumiraDx Limited (Nasdaq: LMDX) is a next-generation point of care diagnostics company that is transforming community-based healthcare. Its actively controlled microfluidic technology provides fast, high performance and accessible diagnostic solutions wherever the patient is for nearly any testing scenario, creating unique testing options at the point of need.

The Company offers a broad menu of lab comparable tests on a single portable Platform, with more than 30 assays on the market and in the pipeline, covering infectious diseases, cardiovascular diseases, diabetes, and coagulation disorders. The Company also supports high-complexity laboratory testing in an accessible high-throughput format to leverage current molecular laboratory operations.

Founded in 2014 and based in the UK, LumiraDx's diagnostic testing solutions are being deployed globally by governments and leading healthcare institutions across laboratories, urgent care, physician offices, pharmacies, schools, and workplaces to help screen, diagnose, and monitor wellness as well as disease. More information on LumiraDx is available at www.lumiradx.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements related to future remedies of the Company’s non-compliance with Nasdaq Listing Rule 5450(a)(1), including actions that may be taken to regain compliance. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements, including, among others, general economic, political and business conditions; changes in interest rates, inflation rates and global and domestic market conditions; the effect of COVID-19 on our business and financial results; obtaining or maintaining regulatory approval, authorization or clearance for our tests; and those factors discussed under the header "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission, or SEC, on April 13, 2022, in our report on Form 6-K that was filed with the SEC on August 16, 2022, and in other filings that we make with the SEC. Although LumiraDx believes that it has a reasonable basis for each forward-looking statement contained in this press release, LumiraDx cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. LumiraDx undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.

FAQ

What does LumiraDx's Nasdaq notification mean for LMDX shareholders?

The notification indicates that LumiraDx's shares have been below the $1.00 minimum bid price requirement for 30 days, which raises the risk of delisting if not corrected.

How long does LumiraDx have to regain compliance with Nasdaq listing rules?

LumiraDx has 180 days from January 27, 2023, to regain compliance with the minimum bid price requirement.

What is the minimum bid price requirement for Nasdaq listed companies?

The minimum bid price requirement for Nasdaq companies is $1.00 per share.

What happens if LumiraDx does not regain compliance by July 26, 2023?

If LumiraDx does not regain compliance by July 26, 2023, it may face delisting from the Nasdaq Global Market.

What are LumiraDx's main products?

LumiraDx specializes in point-of-care diagnostics, offering over 30 assays for various health conditions, including infectious diseases and diabetes.