Nuwellis Regains Compliance with Nasdaq Listing Requirements

Rhea-AI Summary

Nuwellis (NUWE) has successfully regained compliance with Nasdaq's listing requirements, including both the minimum bid price and stockholders' equity requirements. The company will continue trading on the Nasdaq Capital Market under 'NUWE'. This achievement follows strategic financial moves including raising $5.1 million in gross proceeds through warrant exercises and a warrant inducement transaction in November. The company implemented a 1:35 reverse stock split on June 26, 2024, and has improved its balance sheet by raising new equity and reducing liabilities. Nuwellis now exceeds Nasdaq's stockholders' equity requirement of $2.5 million. The company will be subject to a mandatory panel monitor for one year from December 17, 2024.

Positive

• Regained compliance with Nasdaq listing requirements
• Raised $5.1 million in gross proceeds from warrant exercises
• Successfully exceeded $2.5 million stockholders' equity requirement
• Improved balance sheet through liability reduction

Negative

• Required 1:35 reverse stock split to meet listing requirements
• Subject to mandatory Nasdaq panel monitoring for one year

Insights

Financial Compliance Analyst

<p>The regaining of Nasdaq compliance marks a important turning point for Nuwellis. The company has successfully addressed two critical listing requirements: the <b>minimum bid price</b> and <b>stockholders' equity requirement of <money>$2.5 million</money></b>. Through strategic financial maneuvers, including a <b>1:35 reverse stock split</b> and raising <money>$5.1 million</money> in gross proceeds, the company has strengthened its balance sheet significantly.</p><p>The mandatory panel monitor period through December 2024 indicates ongoing scrutiny, but the company's ability to maintain compliance will be strengthened by its improved equity position. For a micro-cap company with a market cap of just <money>$4.37 million</money>, this compliance achievement is particularly notable as it removes an immediate existential threat and provides a more stable foundation for business operations.</p><p>Think of this like a company getting its credit score back above the minimum threshold - while it doesn't guarantee future success, it removes significant restrictions and opens up more opportunities for growth and investment.</p>

MINNEAPOLIS, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Nuwellis, Inc. (Nasdaq: NUWE) (the “Company” or “Nuwellis”) today announced that the Company received formal written notice from The Nasdaq Stock Market LLC ("Nasdaq") that the Company has regained compliance with Nasdaq's minimum bid price requirement (the “Bid Price Requirement”) set forth in Nasdaq Listing Rule 5550(a)(2), as well as Nasdaq’s stockholders’ equity requirement (“Equity Requirement”) set forth in Nasdaq Listing Rule 5550(b)(1). The Company's Common Stock will continue to trade on The Nasdaq Capital Market tier of Nasdaq under the symbol "NUWE".

This confirmation follows the Company’s successful efforts to improve its balance sheet by raising new equity, reducing outstanding liabilities, and reclassifying certain prior warrant liabilities as equity. As a result, Nuwellis now exceeds Nasdaq’s stockholders' Equity Requirement of at least $2.5 million, which was previously reported on our Form 10-Q for the period ending September 30, 2024.

Nestor Jaramillo, President and CEO of Nuwellis, said: "We are pleased to receive Nasdaq’s written notification confirming Nuwellis has regained compliance with both the minimum stockholders’ Equity Requirement and the Bid Price Requirement. Over the past few months, we have made significant strides in improving our balance sheet and expanding our business. This includes the successful raise of $5.1 million in gross proceeds from warrant exercises and through our recent warrant inducement transaction in November. In addition, we implemented a reverse stock split of 1:35 on June 26, 2024.”

As part of the compliance confirmation, Nuwellis will be subject to a mandatory panel monitor for a year from the date the letter was received, December 17, 2024.

About Nuwellis
Nuwellis, Inc. (Nasdaq: NUWE) is a medical device company dedicated to transforming the lives of patients suffering from fluid overload through science, collaboration, and innovation. The company is focused on commercializing the Aquadex SmartFlow^® system for ultrafiltration therapy. Nuwellis is headquartered in Minneapolis, with a wholly owned subsidiary in Ireland. For more information visit www.nuwellis.com or visit us on LinkedIn or Twitter.

About the Aquadex SmartFlow^® System
The Aquadex SmartFlow system delivers clinically proven therapy using a simple, flexible and smart method of removing excess fluid from patients suffering from hypervolemia (fluid overload). The Aquadex SmartFlow system is indicated for temporary (up to 8 hours) or extended (longer than 8 hours in patients who require hospitalization) use in adult and pediatric patients weighing 20 kg or more whose fluid overload is unresponsive to medical management, including diuretics. All treatments must be administered by a health care provider, within an outpatient or inpatient clinical setting, under physician prescription, both having received training in extracorporeal therapies.

Forward-Looking Statements
Certain statements in this release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding the Company’s ability to maintain the continued listing of the Company’s securities on Nasdaq. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including, without limitation, those risks associated with our ability to execute on our commercialization strategy, the possibility that we may be unable to raise sufficient funds necessary for our anticipated operations, our post-market clinical data collection activities, benefits of our products to patients, our expectations with respect to product development and commercialization efforts, our ability to increase market and physician acceptance of our products, potentially competitive product offerings, intellectual property protection, our ability to integrate acquired businesses, our expectations regarding anticipated synergies with and benefits from acquired businesses, and other risks and uncertainties described in our filings with the SEC. Forward-looking statements speak only as of the date when made. Nuwellis does not assume any obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise.

CONTACTS

Investors:
Vivian Cervantes
Gilmartin Group
ir@nuwellis.com

FAQ

How did Nuwellis (NUWE) regain Nasdaq compliance in December 2024?

Nuwellis regained compliance through multiple actions including raising $5.1 million in gross proceeds, implementing a 1:35 reverse stock split, reducing liabilities, and exceeding the $2.5 million stockholders' equity requirement.

What was the ratio of NUWE's reverse stock split in June 2024?

Nuwellis implemented a 1:35 reverse stock split on June 26, 2024.

How much capital did NUWE raise through warrant exercises in 2024?

Nuwellis raised $5.1 million in gross proceeds through warrant exercises and a warrant inducement transaction in November 2024.

What are the monitoring requirements for NUWE after regaining Nasdaq compliance?

Nuwellis will be subject to a mandatory panel monitor for one year from December 17, 2024.

What is the minimum stockholders' equity requirement NUWE needed to meet for Nasdaq?

Nuwellis needed to meet a minimum stockholders' equity requirement of $2.5 million, which they successfully exceeded.