NUTEX HEALTH ANNOUNCES NASDAQ DELISTING NOTIFICATION AND STAY PENDING ONGOING APPEAL. NO IMMEDIATE EFFECT ON THE LISTING OR TRADING OF THE COMMON STOCK.
On May 24, 2024, Nutex Health (NASDAQ: NUTX) received a Nasdaq staff determination letter indicating non-compliance with the $1.00 bid price requirement, leading to potential delisting. Nutex Health has requested a hearing scheduled for July 9, 2024, to appeal the decision, resulting in a stay of the delisting action. The company is also considering a reverse stock split, pending shareholder approval on June 17, 2024, to meet the minimum bid price requirement. The stock will continue trading on Nasdaq during this period.
- Nutex Health has taken immediate action by requesting a hearing to appeal the delisting decision.
- A reverse stock split has been approved by the Board to potentially regain compliance with Nasdaq's minimum bid price rule.
- The company's stock will continue trading on Nasdaq during the appeal process.
- Nutex Health received a delisting notification due to non-compliance with Nasdaq's $1.00 bid price requirement.
- There is a possibility that the company may not regain compliance, potentially leading to delisting.
- The reverse stock split pending approval indicates existing financial instability.
Insights
Nutex Health's notice of potential Nasdaq delisting due to non-compliance with the minimum $1.00 bid price requirement raises significant concerns for investors. Nasdaq's rules are strict on maintaining minimum bid prices to ensure that traded stocks meet certain financial standards and attract serious investors.
The opportunity for Nutex Health to appeal and the possibility of a reverse stock split indicate strategies to regain compliance. A reverse stock split, where the company reduces the number of outstanding shares while increasing the share price proportionally, can help in meeting Nasdaq's requirement but also signals underlying financial distress. While this move could stabilize the stock price temporarily, it does not address fundamental issues like profitability or revenue growth.
Investors should also consider the uncertainties surrounding the appeal process. Should Nutex Health fail to secure a favorable outcome, delisting could lead to reduced liquidity and a potential drop in stock value because it might be moved to an over-the-counter (OTC) market, which lacks the visibility and trading volume of major exchanges like Nasdaq.
The legal process involved in a Nasdaq delisting notice and appeal provides a structured yet challenging pathway for Nutex Health. The company’s request for a hearing is a critical step. The panel’s decision—whether to allow a reverse stock split as a remedy or not—will significantly impact the company’s compliance status.
This process underscores the importance of adherence to listing requirements and the complexities involved in rectifying non-compliance. Failure to comply within the stipulated deadlines can lead to delisting, which complicates trading, impacts investor confidence and might even affect the company’s market valuation negatively. It is essential for shareholders to stay informed about the legal proceedings and potential outcomes.
On May 23, 2024, the Company submitted a request for a hearing to appeal the Staff's delisting determination. Also on May 23, 2024, Nasdaq notified the Company that the delisting action has been stayed, pending a final decision by the Panel. A hearing has been scheduled for July 9, 2024. The Company intends to provide its written submission by the expedited review deadline of May 30, 2024. Based on such submission, the Panel may determine that an oral hearing is not necessary to grant the Company an exemption to gain compliance with the Minimum Bid Price Requirement.
The Company's Board of Directors on April 24, 2024 approved a reverse stock split of its Common Stock at a split ratio of between 1-for-2 and 1-for-16. Pending approval at the Company's annual shareholder meeting on June 17, 2024, the board expects to authorize a reverse stock split at a ratio within such range as soon as practicable after that date, with the intent to regain compliance with the Nasdaq's Minimum Bid Price Requirement. The Company may not regain compliance and may not be able to obtain a favorable final decision from the Panel.
While the hearing process is pending, our Common Stock will continue to trade on Nasdaq.
About Nutex Health Inc.
Headquartered in
The Hospital Division owns, develops and operates innovative health care models, including micro-hospitals, specialty hospitals, and hospital outpatient departments (HOPDs). This division owns and operates 20 facilities in 8 states.
The Population Health Management division owns and operates provider networks such as Independent Physician Associations (IPAs). Through our Management Services Organization (MSO), we provide management, administrative and other support services to our affiliated hospitals and physician groups. Our cloud-based proprietary technology platform aggregates clinical and claims data across multiple settings, information systems and sources to create a holistic view of patients and providers, allowing us to deliver greater quality care more efficiently.
Forward-Looking Statements
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. When used in this press release, the words or phrases "will", "will likely result," "expected to," "will continue," "anticipated," "estimate," "projected," "intend," "goal," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, many of which are beyond the control of the Company. Such uncertainties and risks include, but are not limited to, our ability to successfully execute our growth strategy, changes in laws or regulations, including the interim final and final rules implemented under the No Surprises Act, economic conditions, dependence on management, dilution to stockholders, lack of capital, the effects of rapid growth upon the Company and the ability of management to effectively respond to the growth and demand for products and services of the Company, newly developing technologies, the Company's ability to compete, conflicts of interest in related party transactions, regulatory matters, protection of technology, lack of industry standards, the effects of competition and the ability of the Company to obtain future financing. An extensive list of factors that can affect future results are discussed in the Annual Report on Form 10-K for the year ended December 31, 2023 and its Current Report on Form 10-Q for the periods ended March 31, 2024 under the heading "Risk Factors" in Part I, Item IA thereof, and other documents filed from time to time with the Securities and Exchange Commission. Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed within this press release.
View original content:SOURCE Nutex Health, Inc.
FAQ
Why did Nutex Health receive a delisting notification from Nasdaq?
What actions has Nutex Health taken in response to the delisting notification?
What is the significance of the hearing scheduled for July 9, 2024, for Nutex Health?
What is Nutex Health's plan to meet the Nasdaq minimum bid price requirement?
Will Nutex Health's stock continue to trade on Nasdaq during the appeal process?
When is the reverse stock split expected to be authorized by Nutex Health?
