OneMedNet Provides Updates on Auditor Change and Announces Related Receipt of Nasdaq Notice Regarding Delayed Form 10-Q
OneMedNet (Nasdaq: ONMD) has announced several important updates. The company has dismissed its former auditors, BF Borgers, after they were banned by the SEC, and appointed WithumSmith+Brown as the new auditing firm.
OneMedNet has regained compliance with Nasdaq's minimum bid price rule, maintaining a stock price of at least $1.00 for ten consecutive business days.
The company has entered into a standby equity purchase agreement with Yorkville Advisors Global, securing up to $25 million in funding.
However, due to the auditor change, OneMedNet has delayed filing its quarterly Form 10-Q, receiving a non-compliance notice from Nasdaq. The company has 60 days to submit a compliance plan.
OneMedNet continues to trade on The Nasdaq Capital Market under the symbol ONMD.
- Regained compliance with Nasdaq minimum bid price rule.
- Secured up to $25 million in funding through a standby equity purchase agreement with Yorkville Advisors Global.
- Appointed reputable auditors WithumSmith+Brown.
- Received a non-compliance notice from Nasdaq for delayed Form 10-Q filing.
- Former auditors were banned by the SEC for failing to conduct proper audits.
- Potential uncertainty due to delayed financial statement reviews.
Insights
The announcement from OneMedNet highlights several important updates, reflecting both challenges and opportunities for the company. First, the change in auditors from BF Borgers to WithumSmith+Brown is a significant shift. BF Borgers was banned by the SEC due to failure in meeting audit standards, which introduces some risk perception. However, transitioning to WithumSmith+Brown, a reputable firm, is a positive step that should help restore investor confidence in the company's financial reports.
Compliance with Nasdaq's minimum bid price rule is another important detail. Maintaining a minimum bid price of $1.00 per share is essential for continued listing on Nasdaq. The recent compliance indicates improved stock performance, which is pivotal in retaining investor trust and broadening market appeal.
The standby equity purchase agreement (SEPA) with Yorkville Advisors Global is a strategic move to bolster financial stability. With
From a market perspective, OneMedNet's updates are multifaceted. The auditor change may cause short-term uncertainty, but the long-term benefits of credibility and accurate financial statements outweigh this. Market participants will view this as a restoration of trust.
Regaining Nasdaq compliance is a positive signal. It reassures investors about the company’s viability and mitigates delisting risk, which could have severe market implications. This compliance is likely to sustain or even improve market sentiment.
The SEPA with Yorkville Advisors is designed to provide liquidity and funding for growth. While beneficial, the reliance on equity financing and potential dilution could be a concern. The market will closely watch how efficiently the company uses these funds to drive growth and whether it translates into improved financial performance and stock price appreciation.
The termination of BF Borgers and the hiring of WithumSmith+Brown is a legally significant event. The SEC's ban on BF Borgers for failing to adhere to PCAOB standards underscores regulatory compliance importance. OneMedNet's swift action in appointing a reputable audit firm is a necessary correction to align with legal and regulatory expectations.
The receipt of the Nasdaq notice regarding delayed Form 10-Q filing due to the auditor change is a procedural issue. The company has 60 days to submit a compliance plan. The market should view this as a procedural hurdle rather than a fundamental flaw. If OneMedNet successfully submits and executes a compliance plan, the long-term impact on listing status should be minimal.
- Regains compliance with Nasdaq minimum closing bid price rule -
- Secures financing from institutional investor to support aggressive growth plans -
MINNEAPOLIS, June 24, 2024 (GLOBE NEWSWIRE) -- OneMedNet Corporation (Nasdaq: ONMD) (“OneMedNet” or the “Company”), the leading curator of regulatory-grade Real World Data ("RWD"), inclusive of electronic health records, laboratory results and, uniquely, medical imaging, today provided a number of corporate updates.
“Over the past few weeks, we have been successfully navigating through several interconnected corporate challenges, that were set in motion when our former auditors, BF Borgers, were banned from appearing or practicing before the SEC,” said Aaron Green, OneMedNet’s President and CEO. “I am happy to provide this interim report on our progress to date, and look forward to keeping investors updated as we continue to move forward with our new auditors and new financing to support our aggressive growth plans.”
Terminates Borgers and Appoints New Auditor, WithumSmith+Brown
As previously disclosed via a Form 8-K filed by the Company with the Securities and Exchange Commission (“SEC”) on May 10, 2024, on May 6, 2024, the Company dismissed BF Borgers CPA PC (“BF Borgers”) as its independent registered public accounting firm. On May 3, 2024, the SEC announced that it had settled charges against Borgers that it failed to conduct audits of a number of public companies in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB). As part of the settlement, BF Borgers agreed to a permanent ban on appearing or practicing before the SEC.
On June 3, 2024, the Company appointed WithumSmith+Brown, PC as its new independent registered public accounting firm to audit and review the Company’s financial statements.
Regains Compliance with Nasdaq Listing Rule 5550(a)(2)
As previously disclosed on Form 8-K filed with the SEC on June 14, 2024, the Company received on June 10, 2024 written notice from The Nasdaq Stock Market LLC ("Nasdaq") that the Company has regained compliance with Listing Rule 5550(a)(2), which requires its common stock to maintain a minimum bid price of
The Nasdaq staff made this determination of compliance after the closing bid price of the Company's common stock was at
Enters Into Standby Equity Purchase Agreement with Yorkville Advisors Global
As previously disclosed on Form 8-K filed with the SEC on June 21, 2024, the Company entered into a standby equity purchase agreement (the “SEPA”) with YA II PN, LTD (“YA”), a Cayman Islands exempt limited partnership managed by Yorkville Advisors Global, LP (“Yorkville”), on June 17, 2024. Under the terms of the SEPA, Yorkville committed to purchase up to
On June 18, 2024, Yorkville advanced
The Company intends to use the proceeds from the promissory note and the potential offering of the common shares pursuant to the SEPA for working capital and other general corporate purposes.
The SEPA supersedes and replaces the Company’s definitive securities purchase agreement with Helena Global Investment Opportunities 1 Ltd., which had provided for up to
The securities described herein have not been registered under the Securities Act of 1933, as amended, and may not be sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)
As a result of BF Borgers’ dismissal and the time necessary for its new independent accounting firm to review its financial statements, the Company has not yet filed its Quarterly Report on Form 10-Q for the first quarter ended March 31, 2024. On June 20, 2024, the Company received a notice from the Listing Qualifications Department of Nasdaq (the “Notice”) indicating that, due to the Company's failure to timely file its Form 10-Q with the SEC, the Company is not in compliance with Nasdaq's continued listing requirements under Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule"), which requires the timely filing of all required periodic reports with the SEC.
The Notice states that the Company has 60 days, or until August 19, 2024, to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rules. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company an exception of up to 180 calendar days from the filing's due date, or until December 11, 2024, to regain compliance.
The Company continues to work diligently with its new auditor, WithumSmith+Brown, to complete and file the Form 10-Q as soon as practicable.
Neither the Notice nor the Company's non-compliance with the Listing Rule has an immediate effect on the listing or trading of the Company's securities on Nasdaq, which will continue to trade on The Nasdaq Capital Market under the symbol "ONMD." This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a notification of deficiency.
About OneMedNet Corporation
OneMedNet provides innovative solutions that unlock the significant value contained within the Real-World Data (“RWD”) repositories of over 1,400 healthcare system and provider sites that currently comprise its iRWD™ network. OneMedNet’s proprietary iRWD™ platform provides secure, comprehensive management of diverse clinical data types, including electronic health records, laboratory results, and uniquely, medical imaging. Employing its robust iRWD™ platform, the Company securely de-identifies, searches, and curates the clinical data, bringing a wealth of internal and third-party research opportunities to its drug, medical device and imaging/diagnostic AI development customers.
OneMedNet’s platform is designed to meet the clinical requirements necessary across various domains, including but not limited to rare diseases, oncology, and cardiology. The Company is committed to delivering precise and robust research support services that span the entire continuum of care. This commitment is a cornerstone of OneMedNet’s strategy to enhance patient outcomes and help pave the next wave of healthcare innovation. For more information, please visit www.onemednet.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of OneMedNet; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.
OneMedNet Contacts:
Stephen Kilmer, Investor Relations
Phone: 647.872.4849
Email: stephen.kilmer@onemednet.com
Michael Wong, Director of Marketing
Phone: 800.918.7189
Email: michael.wong@onemednet.com
SOURCE: ONEMEDNET CORPORATION
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