Novo Integrated Sciences Announces Receipt of Notice from Nasdaq

Rhea-AI Summary

Novo Integrated Sciences, Inc. (NASDAQ: NVOS) announced that it received a notice from Nasdaq on January 25, 2023, for failing to comply with continued listing requirements due to late filings of its Annual Report (Form 10-K) for the fiscal year ended August 31, 2022, and its Quarterly Report (Form 10-Q) for the quarter ended November 30, 2022. Following a prior notice on December 15, 2022, Novo has until February 13, 2023, to submit a plan to regain compliance. If accepted, it could extend the compliance deadline to June 12, 2023. Novo is committed to filing the necessary reports promptly to rectify this situation.

Positive

• The potential extension granted by Nasdaq to regain compliance could allow more time for filing the necessary reports, potentially stabilizing investor confidence.

Negative

• The late filing of the Form 10-K and Form 10-Q raises concerns regarding transparency and financial health, which could negatively affect stock price and investor trust.
• Repeated notices from Nasdaq indicate ongoing compliance issues that could lead to delisting if not resolved promptly.

BELLEVUE, Wash.--(BUSINESS WIRE)-- Novo Integrated Sciences, Inc. (NASDAQ: NVOS) (the “Company” or “Novo”), today reported that it received a notice on January 25, 2023 from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) advising the Company that it was not in compliance with Nasdaq’s continued listing requirements under Nasdaq Listing Rule 5250(c)(1) as a result of its failure to timely file its Annual Report on Form 10-K for the fiscal year ended August 31, 2022 (the “Form 10-K”) and its Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2022 (the “Form 10-Q”). The Company previously disclosed that it received a notice from Nasdaq on December 15, 2022 advising the Company that it was not in compliance with Rule 5250(c)(1) as a result of its failure to timely file the Form 10-K.

Under Nasdaq rules, the Company has 60 calendar days from receipt of Nasdaq’s December 2022 notice, or until February 13, 2023, to submit a plan to regain compliance with Rule 5250(c)(1). If Nasdaq accepts the Company’s plan, then Nasdaq may grant an exception of up to 180 calendar days from the due date of the Form 10-K, or until June 12, 2023, to regain compliance.

The Company intends to file the Form 10-K and the Form 10-Q as promptly as possible in order to regain compliance with Rule 5250(c)(1). However, if the Company does not submit the Form 10-K and the Form 10-Q by February 13, 2023, the Company will submit a plan by such date to Nasdaq that outlines, as definitively as possible, the steps the Company will take to promptly file the Form 10-K and/or the 10-Q, as applicable, and regain compliance.

About Novo Integrated Sciences, Inc.

Novo Integrated Sciences, Inc. is pioneering a holistic approach to patient-first health and wellness through a multidisciplinary healthcare ecosystem of multiple patient and consumer touchpoints for services and product innovation. Novo offers an essential and differentiated solution to deliver, or intend to deliver, these services and products through the integration of medical technology, diagnostic and therapeutic solutions, and rehabilitative science.

We believe that “decentralizing” healthcare, through the integration of medical technology and interconnectivity, is an essential solution to the rapidly evolving fundamental transformation of how non-catastrophic healthcare is delivered both now and in the future. Specific to non-critical care, ongoing advancements in both medical technology and inter-connectivity are allowing for a shift of the patient/practitioner relationship to the patient’s home and away from on-site visits to primary medical centers with mass-services. This acceleration of “ease-of-access” in the patient/practitioner interaction for non-critical care diagnosis and subsequent treatment minimizes the degradation of non-critical health conditions to critical conditions as well as allowing for more cost-effective healthcare distribution.

The Company’s decentralized healthcare business model is centered on three primary pillars to best support the transformation of non-catastrophic healthcare delivery to patients and consumers:

• First Pillar: Service Networks. Deliver multidisciplinary primary care services through (i) an affiliate network of clinic facilities, (ii) small and micro footprint sized clinic facilities primarily located within the footprint of box-store commercial enterprises, (iii) clinic facilities operated through a franchise relationship with the Company, and (iv) corporate operated clinic facilities.
• Second Pillar: Technology. Develop, deploy, and integrate sophisticated interconnected technology, interfacing the patient to the healthcare practitioner, thus expanding the reach and availability of the Company’s services, beyond the traditional clinic location, to geographic areas not readily providing advanced, peripheral-based healthcare services, including the patient’s home.
• Third Pillar: Products. Develop and distribute effective, personalized health and wellness product solutions allowing for the customization of patient preventative care remedies and, ultimately, a healthier population. The Company’s science-first approach to product innovation further emphasizes our mandate to create and provide over-the-counter preventative and maintenance care solutions.

Innovation through science combined with the integration of sophisticated, secure technology assures Novo Integrated Sciences of continued cutting-edge advancement in patient-first platforms.

For more information concerning Novo Integrated Sciences, please visit www.novointegrated.com. For more information on Novo Healthnet Limited, Novo’s wholly owned subsidiary, please visit www.novohealthnet.com.

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Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “intend,” “expect,” “anticipate,” “plan,” “potential,” “continue,” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in Novo’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors which are, in some cases, beyond Novo’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Novo’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Novo assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230130005658/en/

Chris David, COO & President

Novo Integrated Sciences, Inc.

chris.david@novointegrated.com

(888) 512-1195

Source: Novo Integrated Sciences, Inc.

FAQ

What compliance issue did Novo Integrated Sciences (NVOS) face?

Novo Integrated Sciences received a notice from Nasdaq for not filing its Annual Report (Form 10-K) and Quarterly Report (Form 10-Q) on time.

What is the deadline for Novo Integrated Sciences to address its compliance issue?

Novo has until February 13, 2023, to submit a plan to regain compliance with Nasdaq's listing requirements.

What happens if Novo does not meet Nasdaq's requirements by the deadline?

If Novo fails to file by the deadline, it must submit a compliance plan to Nasdaq, and could potentially face delisting.

Can Novo Integrated Sciences extend its compliance deadline?

Yes, if Nasdaq accepts Novo's compliance plan, the deadline could be extended up to June 12, 2023.