ENDRA Life Sciences Granted Extension to Regain Compliance with Nasdaq Continued Listing Requirements

Rhea-AI Summary

ENDRA Life Sciences Inc. (NASDAQ: NDRA) has been granted an extension by Nasdaq to regain compliance with the $1.00 bid price requirement for continued listing on The Nasdaq Capital Market. The company now has until November 20, 2024 to evidence a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading sessions. This extension does not immediately affect ENDRA's listing or trading status, and its stock will continue to trade under the symbol 'NDRA'.

Additionally, ENDRA reported that 91% of the Series B Warrants issued in their June 2024 public offering have been exercised, resulting in the issuance of 15,831,864 new shares of common stock. This brings the company's total outstanding common shares to 17,280,655.

Positive

• Extension granted by Nasdaq to regain compliance with listing requirements
• 91% of Series B Warrants from June 2024 offering have been exercised
• Issuance of 15,831,864 new shares of common stock

Negative

• Risk of delisting from Nasdaq if $1.00 bid price requirement is not met by November 20, 2024
• Significant increase in outstanding shares may lead to dilution for existing shareholders

Insights

Financial Analyst

ENDRA Life Sciences' Nasdaq listing extension is a double-edged sword. While it provides breathing room until November 20, 2024, to meet the $1.00 bid price requirement, it also signals ongoing financial challenges. The 91% exercise rate of Series B Warrants is a positive, injecting capital and increasing outstanding shares to 17,280,655. However, this dilution may pressure the stock price further. The company's ability to innovate with TAEUS® technology is promising, but the clock is ticking to demonstrate market traction and financial stability. Investors should closely monitor ENDRA's progress in commercializing its technology and improving its financial position in the coming months.

Market Research Analyst

ENDRA's situation reflects broader challenges in the medical technology sector, particularly for small-cap companies. The extension from Nasdaq is not uncommon in this space, but it underscores the precarious position of firms straddling innovation and financial viability. The high warrant exercise rate suggests investor confidence, yet the need for such capital raises often indicates cash flow concerns. The medical imaging market, valued at $39.03 billion in 2024, is expected to grow at a CAGR of 5.8% through 2028. ENDRA's TAEUS® technology could tap into this growth, but the company must accelerate commercialization to capitalize on market opportunities and secure its Nasdaq listing.

ANN ARBOR, Mich.--(BUSINESS WIRE)-- ENDRA Life Sciences Inc. (NASDAQ: NDRA), a pioneer of Thermo Acoustic Enhanced UltraSound (TAEUS®), today announced that on August 27, 2024, the Company was notified by The Nasdaq Stock Market LLC (“Nasdaq”) that the Nasdaq Hearings Panel (the “Panel”) has granted the Company’s request for an extension through November 20, 2024, to evidence compliance with the $1.00 bid price requirement for continued listing on The Nasdaq Capital Market.

To regain compliance with the bid price requirement, the Company must evidence a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading sessions on or before November 20, 2024. The Company is considering all available options to timely evidence compliance with the terms of the Panel’s decision.

This notification from Nasdaq has no immediate effect on the listing or trading of the Company's common stock, which will continue to trade on the Nasdaq Capital Market under the symbol “NDRA.”

The Company is also announcing that as of today, 91% of the Series B Warrants that were issued in connection with the June 2024 public offering have been exercised, resulting in the issuance of 15,831,864 shares of common stock, bringing the Company’s total number of outstanding common shares to 17,280,655.

About ENDRA Life Sciences Inc.

ENDRA Life Sciences is the pioneer of Thermo Acoustic Enhanced UltraSound (TAEUS^®), a ground-breaking technology that characterizes tissue similar to an MRI, but at 1/40^th the cost and at the point of patient care. TAEUS^® is initially focused on the non-invasive assessment of fatty tissue in the liver. Steatotic liver disease (SLD, formerly known as NAFLD-NASH) is a chronic liver disease spectrum that affects over two billion people globally, and for which there are no practical diagnostic tools. Beyond the liver, ENDRA is exploring several other clinical applications of TAEUS^®, including non-invasive visualization of tissue temperature during energy-based surgical procedures. For more information, please visit www.endrainc.com.

Forward-Looking Statements

All statements in this press release that are not based on historical fact are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of terms such as “approximate,” "anticipate," “attempt,” "believe," "could," "estimate," "expect," “forecast,” “future,” "goal," “hope,” "intend," "may," "plan," “possible,” “potential,” “project,” "seek," "should," "will," “would,” or other comparable terms (including the negative of any of the foregoing), although some forward-looking statements are expressed differently. Examples of forward-looking statements for ENDRA include, among others, expectations with respect to FDA requirements regarding its clinical trials and de novo submission for its TAEUS liver device; estimates of the timing of future events and anticipated results of its development efforts, including the timing of submission for and receipt of required regulatory approvals and product launches and sales; statements relating to future financial position and projected costs and revenue; expectations concerning ENDRA's business strategy; and statements regarding the Company’s ability to regain compliance with the Nasdaq continued listing standards. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements as a result of various factors including, among others: the ability to raise additional capital in order to continue as a going concern; the ability to obtain FDA and other regulatory approvals necessary to sell ENDRA medical devices in certain markets in a timely manner, or at all; the ability to develop a commercially feasible technology and its dependence on third parties to design and manufacture its products; ENDRA’s ability to regain compliance with Nasdaq listing standards and remain listed on a securities exchange; ENDRA’s dependence on its senior management team; market acceptance of ENDRA’s technology and the amount and nature of competition in its industry; ENDRA’s ability to protect its intellectual property; and the other risks and uncertainties described in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of the company’s most recent Annual Report on Form 10-K and in subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this press release speak only as of the date of issuance, and ENDRA assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240828196047/en/

Company:

Richard Jacroux

Chief Financial Officer

investors@endrainc.com

www.endrainc.com

Investor Relations:

Yvonne Briggs

LHA Investor Relations

(310) 691-7100

ybriggs@lhai.com

Source: ENDRA Life Sciences Inc.

FAQ

What is the deadline for ENDRA Life Sciences (NDRA) to regain compliance with Nasdaq's bid price requirement?

ENDRA Life Sciences (NDRA) has until November 20, 2024, to evidence a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading sessions to regain compliance with Nasdaq's continued listing requirements.

How many Series B Warrants from ENDRA Life Sciences' (NDRA) June 2024 offering have been exercised?

As of the announcement date, 91% of the Series B Warrants issued in ENDRA Life Sciences' (NDRA) June 2024 public offering have been exercised.

How many new shares of common stock were issued by ENDRA Life Sciences (NDRA) due to the warrant exercise?

ENDRA Life Sciences (NDRA) issued 15,831,864 new shares of common stock as a result of the Series B Warrants exercise from the June 2024 public offering.

What is the current total number of outstanding common shares for ENDRA Life Sciences (NDRA)?

Following the exercise of Series B Warrants, ENDRA Life Sciences (NDRA) now has a total of 17,280,655 outstanding common shares.