Business Context and Reporting Period
This Form 8-K Current Report was filed by Alzamend Neuro, Inc. (ALZN) on June 28, 2022. The report addresses a regulatory notice received on June 22, 2022, regarding the company's compliance with Nasdaq listing standards. The company is an emerging growth company incorporated in Delaware.
Key Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The report focuses exclusively on a listing deficiency notice.
Material Changes
The material event reported is the receipt of a Deficiency Letter from the Nasdaq Listing Qualifications Staff. The company failed to comply with Nasdaq Listing Rule 5550(a)(2) because its common stock bid price closed below $1.00 per share for 30 consecutive business days prior to June 22, 2022.
Guidance, Outlook, and Risks
- Compliance Period: The company has 180 calendar days, until December 19, 2022, to regain compliance.
- Requirement: To regain compliance, the bid price must close at or above $1.00 per share for a minimum of 10 consecutive business days within the compliance period.
- Contingencies: If compliance is not achieved by the deadline, the company may be eligible for an additional 180-day period if it meets other listing standards (excluding the bid price) and notifies Nasdaq of its intent to cure, potentially via a reverse stock split.
- Risks: There is no assurance the company will regain compliance. Failure to do so could result in delisting. The company may appeal any delisting determination to a Nasdaq hearings panel.
- Current Status: The deficiency notice has no immediate effect on trading; the stock continues to trade on the Nasdaq Capital Market under the symbol "ALZN."
Investor Verification Checklist
- Verify the current closing bid price of ALZN stock relative to the $1.00 threshold.
- Monitor the company's progress toward achieving 10 consecutive days of compliance before the December 19, 2022 deadline.
- Watch for announcements regarding a potential reverse stock split if the company fails to meet the price requirement organically.
- Review subsequent filings for any updates on the company's intent to seek a second compliance period or appeal a potential delisting.