Nasdaq Panel Grants NLS Pharmaceutics' Request for Extension to Comply with Continued Listing Requirements

Rhea-AI Summary

NLS Pharmaceutics announced that the Nasdaq Hearings Panel has granted the company an extension until October 14, 2024, to meet listing requirements for the Nasdaq Capital Market. The company must comply with a minimum bid price of $1.00 per share and maintain at least $2,500,000 in stockholders' equity, as per Nasdaq Listing Rules 5550(a)(2) and 5550(b)(1). Previously, NLS received notification from Nasdaq that it failed to meet these criteria, prompting a hearing on June 4, 2024. Despite the extension, there are no guarantees that NLS will achieve compliance by the deadlines.

Positive

• None.

Negative

• NLS Pharmaceutics failed to maintain a minimum bid price of $1.00 per share.
• The company did not comply with the minimum $2,500,000 stockholders' equity requirement.
• The company's securities were at risk of delisting from the Nasdaq Capital Market.
• There is no assurance that NLS will meet the listing requirements by the new deadlines.

Insights

Financial Analyst

Extension Granted: The recent decision by the Nasdaq Hearings Panel to grant NLS Pharmaceutics an extension until October 14, 2024, to achieve compliance with Nasdaq's continued listing requirements has significant implications. The firm now has a clear deadline to meet specific financial thresholds, including a minimum bid price of $1 and minimum stockholders' equity of $2.5 million. This extension provides a brief respite but underscores the urgency of making strategic financial decisions to stabilize its market position.

Potential Short-term Impact: In the short term, this may bring some relief to current investors as it eliminates the immediate risk of delisting. However, the pressure remains high to meet the strict financial requirements. Failure to do so may still result in delisting, resulting in loss of market confidence and potential liquidity issues for investors holding the stock.

Long-term Considerations: From a long-term perspective, the company's ability to regain compliance hinges on its strategic execution. Successful compliance could enhance investor confidence and support stock price recovery. Conversely, failure to meet the requirements could lead to long-term reputational damage and financial instability. Investors should monitor the company's financial performance closely over the next few months.

Market Research Analyst

Investor Sentiment: The extension granted by Nasdaq can be seen as a double-edged sword for investors. On one hand, it provides a ray of hope and shows that the company has a plan in place to address the compliance issues. On the other hand, it also signals that the company is currently not meeting fundamental financial criteria, which can be a red flag for conservative investors.

Industry Comparisons: It is not uncommon for companies in the biopharmaceutical sector to face compliance issues, particularly when they are in phases of high expenditure related to research and development. However, continuous non-compliance is generally frowned upon. Investors should compare NLS Pharmaceutics' situation with peers to gauge whether this extension is a sign of underlying issues or a temporary setback.

Market Reactions: Stock price volatility might increase as October approaches, driven by speculation and market reactions to the company's ongoing actions to regain compliance. Investors should be prepared for potential fluctuations and consider how these may align with their investment strategies.

ZURICH, SWITZERLAND / ACCESSWIRE / June 25, 2024 / NLS Pharmaceutics Ltd. (NASDAQ:NLSP)(NASDAQ:NLSPW) ("NLS" or the "Company"), a leading Swiss biopharmaceutical company dedicated to pioneering therapies for rare and complex central nervous system disorders, announced today 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, as discussed more fully below.

Subject to the Company meeting certain financial, share price and other requirements by September 3, 2024 and October 14, 2024, the Panel granted the Company an extension until October 14, 2024, to regain compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 of the Company's common shares, and Nasdaq Rule 5550(b)(1), which requires a minimum of $2,500,000 of stockholders' equity, or satisfy any of the alternative requirements in Listing Rule 5550(b).

As previously disclosed by the Company, on April 17, 2024, NLS received a determination letter from the staff of the Listing Qualifications Department of Nasdaq (the "Staff") notifying the Company of the Staff's determination that, unless the Company timely requests a hearing before the Panel, the Company's securities would be subject to delisting from The Nasdaq Capital Market due to the Company's failure to maintain at least a $1 bid price per share over the course of 30 consecutive business days, as set forth in Nasdaq Listing Rule 5550(a)(2). In addition, on May 22, 2024, the Company received an additional determination letter from the Staff notifying the Company that it did not comply with the minimum $2,500,000 stockholders' equity requirement for continued listing set forth in Listing Rule 5550(b), and that the additional delinquency may serve as a separate basis for the delisting of the Company's securities from Nasdaq. The Company requested a hearing with the Panel. A hearing on the matter was held on June 4, 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 NLS Pharmaceutics Ltd.

NLS is a global development-stage biopharmaceutical company, working with a network of world-class partners and internationally recognized scientists, focused on the discovery and development of innovative therapies for patients with rare and complex central nervous system disorders who have unmet medical needs. Headquartered in Switzerland and founded in 2015, NLS is led by an experienced management team with a track record of developing and commercializing product candidates. For more information, please visit www.nlspharma.com.

Safe Harbor Statement

This letter contains expressed or implied forward-looking statements pursuant to U.S. Federal securities laws. For example, NLS is using forward-looking statements when it discusses the potential to regain compliance with Nasdaq's continued listing requirements. These forward-looking statements and their implications are based on the current expectations of the management of NLS only and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; NLS may encounter delays or obstacles in launching and/or successfully completing its clinical trials; NLS' products may not be approved by regulatory agencies, NLS' technology may not be validated as it progresses further and its methods may not be accepted by the scientific community; NLS may be unable to retain or attract key employees whose knowledge is essential to the development of its products; unforeseen scientific difficulties may develop with NLS' process; NLS' products may wind up being more expensive than it anticipates; results in the laboratory may not translate to equally good results in real clinical settings; results of preclinical studies may not correlate with the results of human clinical trials; NLS' patents may not be sufficient; NLS' products may harm recipients; changes in legislation may adversely impact NLS; inability to timely develop and introduce new technologies, products and applications; and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of NLS to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, NLS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting NLS is contained under the heading "Risk Factors" in NLS' annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission ("SEC"), which is available on the SEC's website, www.sec.gov, and in subsequent filings made by NLS with the SEC.

For additional information:

Investor Relations Contact
InvestorRelations@nls-pharma.com
www.nlspharma.com
www.nlspharmaceutics.com

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SOURCE: NLS Pharmaceutics AG

View the original press release on accesswire.com

FAQ

What recent extension did NLS Pharmaceutics receive from Nasdaq?

NLS Pharmaceutics received an extension until October 14, 2024, to comply with Nasdaq's continued listing requirements.

What are the compliance requirements NLS Pharmaceutics must meet by October 14, 2024?

NLS Pharmaceutics must maintain a minimum bid price of $1.00 per share and at least $2,500,000 in stockholders' equity.

What prompted NLS Pharmaceutics to request a hearing with the Nasdaq Panel?

NLS Pharmaceutics requested a hearing after receiving notifications that it failed to meet the minimum bid price and stockholders' equity requirements.

When did NLS Pharmaceutics receive the determination letters from Nasdaq?

NLS Pharmaceutics received determination letters on April 17, 2024, and May 22, 2024, regarding non-compliance with listing requirements.

What is the stock symbol for NLS Pharmaceutics?

The stock symbol for NLS Pharmaceutics is NLSP.