Otonomy Announces Change in Stock Exchange Listing

Rhea-AI Summary

Otonomy, Inc. (Nasdaq: OTIC) announced that its shares will be suspended from trading on Nasdaq effective December 23, 2022, due to a closing bid price of less than $0.10 per share for ten consecutive trading days. The decision follows a request for a hearing to contest the delisting but was withdrawn after the company's announcement of a Plan of Dissolution. Consequently, Otonomy's shares will transition to the OTC Pink Market.

Positive

• None.

Negative

• Shares suspended from trading on Nasdaq due to bid price below $0.10.
• Withdrawal from Nasdaq hearing process indicates lack of compliance efforts.
• Following the suspension, shares will trade on the OTC Pink Market, which may decrease visibility and liquidity.

SAN DIEGO, Dec. 22, 2022 (GLOBE NEWSWIRE) -- Otonomy, Inc. (Nasdaq: OTIC) today announced that it received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC (Nasdaq) indicating that the company’s shares would be suspended from trading on Nasdaq effective at the open of business on December 23, 2022. Following such suspension, the company’s shares will be traded on the OTC Pink Market.

As previously reported, on November 14, 2022, Otonomy received a notice from Nasdaq indicating that the Listing Qualifications Staff (the Staff) had determined to delist the company’s securities unless the company timely requested a hearing before the Nasdaq Hearings Panel (the Panel). The Staff’s determination was due to the company’s securities having a closing bid price of less than $0.10 per share for the preceding ten consecutive trading days.

On December 1, 2022, the Company submitted a request for a hearing and delisting was stayed pending the company’s hearing with the Panel scheduled for December 22, 2022. Following Otonomy’s announcement of its Plan of Dissolution on December 19, 2022, the company had further discussions with Nasdaq personnel and determined that its plan would not support regaining compliance to maintain the listing of its securities on Nasdaq. On December 21, 2022, the company notified Nasdaq of its intention to withdraw from the Nasdaq hearing process.

Based on Nasdaq’s procedures, once the withdrawal from the hearing process has been made, delisting of the stock occurs two business days later. Accordingly, Nasdaq will suspend trading of Otonomy’s shares effective at the open of business on December 23, 2022. Following such suspension, Otonomy’s shares will be traded on the OTC Pink Market.

Contacts:

Investor Inquiries
ICR Westwicke
Robert H. Uhl
Managing Director
858.356.5932
robert.uhl@westwicke.com

 

FAQ

Why were Otonomy shares suspended from Nasdaq trading?

Otonomy shares were suspended from Nasdaq trading due to a closing bid price below $0.10 for ten consecutive trading days.

What is the status of Otonomy's Nasdaq listing?

Otonomy has withdrawn from the Nasdaq hearing process, leading to its delisting effective December 23, 2022.

What will happen to Otonomy shares after Nasdaq suspension?

After suspension, Otonomy shares will trade on the OTC Pink Market.

When did Otonomy announce its Plan of Dissolution?

Otonomy announced its Plan of Dissolution on December 19, 2022.

What did Otonomy do in response to the Nasdaq delisting notice?

Otonomy submitted a request for a hearing but later withdrew from the process.