NASDAQ PANEL GRANTS MARPAI'S REQUEST FOR EXTENSION TO COMPLY WITH CONTINUED LISTING REQUIREMENTS

Rhea-AI Summary

Marpai, Inc. (MRAI) receives an extension from the Nasdaq Hearings Panel to regain compliance with the Market Value of Listed Securities requirement, allowing them until May 28, 2024. The company has been working on raising equity, improving operational efficiencies, and driving growth through customer renewals and wins.

Insights

Market Research Analyst

The extension given to Marpai, Inc. by the Nasdaq Hearings Panel to meet the MVLS requirement is a critical lifeline for the company. It indicates a level of confidence by Nasdaq in Marpai's ability to execute its turnaround plan. The MVLS is a key indicator of a company's market capitalization and falling below the threshold can often lead to decreased investor confidence and limited access to capital markets. Marpai's focus on raising equity, improving operational efficiencies and driving growth through customer renewals and wins is essential for increasing the company's market value and investor appeal.

However, the market will closely watch Marpai's ability to meet the new deadline. Failure to do so could result in delisting, which typically leads to lower liquidity and higher volatility in a stock. Investors will need to weigh the potential for Marpai to execute its plan against the risk of non-compliance and subsequent delisting. The situation underscores the importance of a company maintaining compliance with exchange requirements to ensure continued access to the broad investor base that comes with a Nasdaq listing.

Financial Analyst

The announcement by Marpai, Inc. regarding its granted extension to regain compliance with Nasdaq's MVLS requirement is a pivotal development for the company's financial strategy. The potential delisting had likely been a significant overhang on the stock and this extension may alleviate some immediate selling pressure. For investors, the key factors to monitor will be Marpai's ability to raise sufficient equity, the effectiveness of its operational efficiencies and the materialization of growth from customer renewals and new wins.

Investors should also consider the broader implications of Marpai's situation. While the company has been given more time, the need to meet a specific market value underlines the importance of market perception and the tangible financial metrics that influence it. The company's strategic decisions in the coming weeks will be scrutinized for their potential to impact the stock's market value positively or negatively.

Legal Expert

The legal process outlined by Nasdaq's Listing Rule 5810(c)(3)(C), which granted Marpai, Inc. an initial 180-day period to regain compliance, followed by an extension after a hearing, reflects the structured regulatory environment that companies must navigate. For Marpai, navigating this process effectively has been crucial to avoid delisting. The Panel Decision represents a procedural outcome of Marpai's appeal and underscores the importance of regulatory compliance for listed companies.

It is important to note that while the company has been granted an extension, there remains a level of uncertainty as there can be no assurance provided that Marpai will meet the necessary requirements within the given timeframe. Stakeholders should be aware of the legal and regulatory risks associated with non-compliance, including the potential impacts on the company's ability to raise funds, its stock liquidity and overall market reputation.

TAMPA, Fla., March 13, 2024 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (Nasdaq: MRAI), an independent national Third-Party Administration (TPA) company transforming the $22 billion TPA market supporting self-funded employer health plans with affordable, intelligent, healthcare, today announced that it received notice from the Nasdaq Hearings Panel ("Panel") of The Nasdaq Stock Market ("Nasdaq") that it has granted the Company an extension to regain compliance with the continued listing requirements for The Nasdaq Capital Market (the "Panel Decision"), as discussed more fully below.

Subject to the Company meeting certain requirements by March 31, 2024, the Hearings Panel granted the Company an extension until May 28, 2024, to regain compliance with the Market Value of Listed Securities ("MVLS") requirement of $35,000,000 or satisfy any of the alternative requirements in Listing Rule 5550(b).

"The extension granted by the Nasdaq Hearings Panel will allow us to finish executing our plan to regain compliance with Nasdaq's minimum market value of listed securities requirement," said Damien Lamendola, CEO of Marpai. "Marpai has made significant progress on our plan to raise equity, improve operational efficiencies and drive growth through our recent customer renewals and wins."

As previously disclosed by the Company, on May 31, 2023, Nasdaq Listing Qualifications staff ("Staff") notified the Company that the market value of its listed securities ("MVLS") had been below the minimum $35,000,000 required for continued listing as set forth in Listing Rule 5550(b)(2). In accordance with Listing Rule 5810(c)(3)(C), the Company was provided 180 calendar days, or until November 27, 2023, to regain compliance. On November 28, 2023, the Staff notified the Company that it had determined to delist the Company as it did not comply with the MVLS requirement for listing on the Exchange. On November 29, 2023, the Company requested a hearing. A hearing on the matter was held on February 22, 2024, where the Company presented its compliance plan.

Notwithstanding the foregoing, there can be no assurance that the Company will be able to meet these deadlines or ultimately regain compliance with all applicable requirements for continued listing.

About Marpai, Inc.

Marpai, Inc. (Nasdaq: MRAI) is a leading, national TPA company bringing value-oriented health plan services to employers that directly pay for employee health benefits. Primarily competing in the $22 billion TPA sector serving self-funded employer health plans representing over $1 trillion in annual claims. Marpai works to deliver the healthiest member population for the health plan budget. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna and all TPA services. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release.

Forward-Looking Statement Disclaimer

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 "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward looking statements when it discusses the potential to regain compliance with the Nasdaq listing rules. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.

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SOURCE Marpai

FAQ

What extension did Marpai, Inc. (MRAI) receive from the Nasdaq Hearings Panel?

Marpai, Inc. (MRAI) received an extension until May 28, 2024, to regain compliance with the Market Value of Listed Securities requirement.

What is the Market Value of Listed Securities requirement for Marpai, Inc. (MRAI) to regain compliance?

Marpai, Inc. (MRAI) needs to meet the Market Value of Listed Securities requirement of $35,000,000 or satisfy alternative requirements in Listing Rule 5550(b) to regain compliance.

What steps has Marpai, Inc. (MRAI) taken to regain compliance with Nasdaq's requirements?

Marpai, Inc. (MRAI) has been working on raising equity, improving operational efficiencies, and driving growth through recent customer renewals and wins to meet Nasdaq's requirements.

What was the notification received by Marpai, Inc. (MRAI) from Nasdaq Listing Qualifications staff?

Marpai, Inc. (MRAI) was notified that the market value of its listed securities had been below the minimum $35,000,000 required for continued listing, leading to the need to regain compliance.

What was the outcome of the hearing held by the Nasdaq Hearings Panel regarding Marpai, Inc. (MRAI)?

During the hearing held on February 22, 2024, Marpai, Inc. (MRAI) presented its compliance plan to the Nasdaq Hearings Panel in an effort to regain compliance with the Market Value of Listed Securities requirement.