Surrozen, Inc. Form 8-K Summary
Business Context and Reporting Period
Surrozen, Inc. filed this Current Report on January 4, 2023, with the report signed January 5, 2023. The filing concerns the company’s continued listing status on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2).
Key Financial and Listing Metrics
- Nasdaq notified Surrozen that the average closing price of its common stock over the prior 30 consecutive trading days had fallen below the required minimum of $1.00 per share.
- The filing does not provide revenue, profit, cash flow, margin, debt, cash balance, or liquidity figures.
- The notice does not immediately affect the listing or trading of Surrozen’s common stock, which remains listed on Nasdaq subject to compliance with other listing requirements.
Material Change and Compliance Timeline
- Surrozen received written notice from Nasdaq on January 4, 2023; the deficiency was identified based on trading through January 3, 2023.
- The company has 180 calendar days, through July 3, 2023, to regain compliance.
- Compliance requires a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days within the initial compliance period.
- Surrozen may be eligible for an additional 180-calendar-day compliance period if it meets Nasdaq’s other applicable continued-listing and initial-listing standards, including the market value of publicly held shares, and provides written notice of its intent to cure the deficiency.
Management Commentary, Risks, and Contingencies
Management stated that Surrozen intends to monitor the closing bid price and evaluate available options to regain compliance. The company cautioned that there can be no assurance it will regain compliance or maintain compliance with other Nasdaq listing requirements.
If Nasdaq determines that the deficiency is unlikely to be cured or that other listing standards are not satisfied, the company’s common stock could become subject to delisting. Surrozen would have the right to appeal a delisting determination to a Nasdaq Listing Qualifications Panel and request a hearing.
Investor Verification Items
- Verify whether Surrozen regained compliance by July 3, 2023, or received an additional compliance period.
- Monitor subsequent Nasdaq notices, any reverse stock split or other corporate action, and the company’s continuing compliance with Nasdaq listing standards.
- Review subsequent filings for updated cash resources, operating results, financing activity, and any disclosure regarding delisting risk.