Business Context and Reporting Period
Cocrystal Pharma, Inc. (COCP), a Delaware corporation, filed this Form 8-K on November 16, 2021. The company is listed on The Nasdaq Capital Market. This report addresses a specific regulatory notice received from Nasdaq regarding stock listing compliance.
Key Financial Metrics
This filing is a current report regarding a listing deficiency and does not contain financial statements. Consequently, data regarding revenue, profit, cash flow, margins, debt, and liquidity are not provided in this document.
Material Changes
The material event reported is the receipt of a notification from Nasdaq on November 16, 2021, stating that the Company failed to maintain a minimum bid price of $1.00 per share for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). This noncompliance triggers a grace period but does not result in immediate delisting.
Outlook, Risks, and Management Commentary
- Grace Period: The Company has an initial 180-calendar-day grace period to regain compliance, ending on May 15, 2022.
- Compliance Requirement: To regain compliance, the common stock must close at or above $1.00 per share for at least 10 consecutive business days within the grace period.
- Extension Possibility: If compliance is not met by May 15, 2022, the Company may be eligible for an additional 180-day grace period. Qualification requires meeting the market value of publicly held shares requirement and all other initial listing standards (except bid price) and providing written notice of intent to cure, potentially via a reverse stock split.
- Delisting Risk: If the Company fails to cure the deficiency or is ineligible for an extension, Nasdaq will issue a notice of delisting.
- Management Action: Management intends to monitor the bid price and assess options to maintain the listing. The stock continues to trade on Nasdaq pending compliance.
Investor Verification Checklist
- Verify the current trading price of COCP to assess the likelihood of meeting the $1.00 bid price requirement.
- Monitor future filings for announcements regarding a reverse stock split or other capital structure changes intended to cure the deficiency.
- Check the Company's market value of publicly held shares to determine eligibility for a potential second grace period.
- Review the Company's most recent 10-K or 10-Q for financial health context, as this 8-K contains no financial data.