Business Context and Reporting Period
This Form 8-K was filed by CHF Solutions, Inc. (trading symbol CHFS) on April 17, 2020. The filing addresses a notice from the Nasdaq Stock Market regarding the company's compliance with the Minimum Bid Price Rule (Rule 5550(a)(2)). The company had previously been notified on December 17, 2019, that its stock price had closed below $1.00 per share for 30 consecutive business days.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on regulatory compliance regarding stock listing standards.
Material Changes and Regulatory Status
- Compliance Extension: Due to the global market impact of COVID-19, Nasdaq suspended compliance periods effective April 16, 2020, until June 30, 2020.
- New Deadline: The company's deadline to regain compliance with the Minimum Bid Price Rule has been extended to August 28, 2020.
- Compliance Requirement: To regain compliance, the closing bid price of the Common Stock must be $1.00 per share or more for a minimum of 10 consecutive business days.
Management Commentary and Outlook
Management intends to seek stockholder approval at the Annual Meeting on May 20, 2020, to amend the Certificate of Incorporation. This amendment would grant the Board of Directors the discretion to effect a reverse stock split if necessary to maintain compliance with the Minimum Bid Price Rule. The Board has until August 28, 2020, to make this determination.
Investor Verification Checklist
- Verify the outcome of the stockholder vote on the reverse stock split amendment at the May 20, 2020 Annual Meeting.
- Monitor the daily closing bid price of CHFS stock to determine if it meets the $1.00 threshold for 10 consecutive days before August 28, 2020.
- Confirm whether the Board exercises its discretion to implement a reverse stock split if the price target is not met organically.