STRATA Skin Granted Extension by Nasdaq to Regain Compliance with Minimum Bid Requirement
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Insights
The extension granted by Nasdaq for STRATA Skin Sciences to regain compliance with the minimum bid price rule is a critical lifeline for the company. This development is essential for maintaining investor confidence and ensuring the continuity of the company's stock market presence. The minimum bid price rule is a common regulatory mechanism used by stock exchanges to filter out stocks that may not meet certain financial health criteria, generally seen as a proxy for stability and investor interest.
From a financial analysis standpoint, the ability of STRATA to maintain its listing without resorting to a reverse stock split is a positive sign. Reverse stock splits can often be perceived negatively by the market as they may indicate a company's underlying issues such as poor financial performance or limited growth prospects. However, the pressure to improve stock performance within the given timeframe can also lead to strategic decisions focused on short-term stock price improvements rather than long-term business health.
For shareholders and potential investors, the implications are twofold. In the short-term, the extension offers a reprieve from immediate delisting concerns, which can stabilize the stock price. In the long-term, however, the company's ability to organically improve its stock price to meet Nasdaq's requirements will be indicative of its operational success and market confidence. Investors should monitor STRATA's operational performance and strategic initiatives closely as these will be key determinants of the company's ability to meet Nasdaq's continued listing standards.
The notice from Nasdaq serves as an important indicator of STRATA Skin Sciences' current market positioning. The dermatologic medical technology sector is competitive, with innovation and market penetration being crucial for success. STRATA's focus on developing and commercializing products for dermatologic conditions places it in a high-growth potential market, as demand for such treatments is on the rise due to increasing skin health awareness and an aging population.
However, the failure to maintain the minimum bid price suggests that the market may currently undervalue STRATA's growth potential or be concerned about its financial stability. The company's response to this challenge, including any strategic changes or improvements in product offerings, will be instrumental in its ability to regain compliance. The market will be observing whether STRATA can leverage its product pipeline and market strategies to drive up the stock price organically.
Furthermore, the company's stock performance relative to its industry peers will also provide insight into its competitive standing. A successful rebound in STRATA's stock price, supported by solid business performance, could signal to the market that the company is on a trajectory for growth, potentially leading to increased investor interest and positive stock market activity.
The regulatory aspect of Nasdaq's minimum bid price rule is a crucial element in the listing standards that companies must navigate. The rule's intent is to maintain the quality of the market and protect investors from the volatility and low liquidity often associated with lower-priced stocks. STRATA's receipt of the extension to regain compliance indicates that it has met other qualitative and quantitative listing requirements, which underscores that the company's issue is specifically with its stock price rather than broader compliance failings.
For STRATA, the extension is a legal allowance that provides a structured timeline to address the bid price deficiency. The legal ramifications of failing to meet the June 24, 2024 deadline could include delisting, which would have significant repercussions for the company's ability to raise capital and for shareholders' ease of trading. It is also noteworthy that STRATA has indicated a willingness to consider a reverse stock split, a legal procedure that reduces the number of shares in circulation, thus potentially increasing the bid price of remaining shares, if necessary to maintain compliance.
The company's proactive communication of its intention to cure the deficiency demonstrates a commitment to regulatory adherence and transparency with its stakeholders. As the deadline approaches, legal scrutiny will intensify, both from Nasdaq and from shareholders who may be affected by the company's compliance efforts and any resulting corporate actions.
HORSHAM, Pa., Jan. 03, 2024 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA” or the “Company”) (NASDAQ: SSKN), a medical technology company dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today announced that it has received a notification letter (“Notice”) from Nasdaq Stock Market LLC (“Nasdaq”) that the Company has been granted a 180-day extension, or until June 24, 2024, to regain compliance with Nasdaq’s minimum bid price rule.
As previously disclosed, on June 26, 2023, the Company received Notice from Nasdaq notifying the Company of its noncompliance with Nasdaq Listing Rule 5550(a)(2) (the “Rule”) by failing to maintain a minimum closing bid price for its common stock on the Nasdaq Global Select Market of at least
Nasdaq’s determination is based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market, with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period and if necessary, by effecting a reverse stock split.
If at any time before June 24, 2024, the closing bid price of the Company’s ordinary shares is at least
The Company will continue to monitor the closing bid price for its common stock and to assess its options for maintaining the listing of its common stock on the NASDAQ Capital Market in light of this Notice.
This current notification from Nasdaq has no immediate effect on the listing or trading of the Company's common stock, which will continue to trade on the Nasdaq Capital Market under the symbol “SSKN.”
About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company dedicated to developing, commercializing and marketing innovative products for the in-office treatment of various dermatologic conditions such as psoriasis, vitiligo, and acne. Its products include the XTRAC® excimer laser, VTRAC® lamp systems, and the TheraClear®X Acne Therapy System.
STRATA is proud to offer these exciting technologies in the U.S. through its unique Partnership Program. STRATA’s popular partnership approach includes a fee per treatment cost structure versus an equipment purchase, installation and use of the device, on-site training for practice personnel, service and maintenance of the equipment, dedicated account and customer service associates, and co-op advertising support to help raise awareness and promote the program within the practice.
Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to launch and sell an acne treatment device and to integrate that device into its product offerings, the Company’s ability to develop, launch and sell products recently acquired or to be developed in the future, the Company’s ability to develop social media marketing campaigns, direct to dermatologist marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market conditions labor supply shortages, or supply chain interruptions resulting from the coronavirus, fiscal, and political factors, responses, or conditions affecting the Company, the medical device industry and our customers and patients in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.
Investor Contact:
Rich Cockrell
CG Capital
Phone: +1 (404) 736-3838
sskn@cg.capital
FAQ
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