Business Context and Reporting Period
Vallon Pharmaceuticals, Inc. filed this Form 8-K on June 28, 2022, reporting an event dated June 27, 2022. The filing identifies Vallon Pharmaceuticals, Inc. as the registrant; the request metadata references GRI Bio, Inc., which is not the name shown in the filing.
The company reported receipt of a Nasdaq deficiency notice regarding its continued listing on the Nasdaq Capital Market.
Financial and Operating Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, liquidity, or other financial statement metrics.
Material Changes Versus the Prior Comparable Period
On June 27, 2022, Nasdaq notified the company that its common stock had failed to meet the $1.00 minimum closing bid price requirement for 30 consecutive business days under Nasdaq Listing Rule 5550(a)(2).
The notice did not immediately affect the stock’s Nasdaq listing. The company received an initial 180-calendar-day compliance period ending December 27, 2022. To regain compliance, the stock’s closing bid price must be at least $1.00 for a minimum of 10 consecutive business days before that deadline.
Guidance, Outlook, Risks, Contingencies, and Unusual Items
- The company stated that it will actively monitor its closing bid price and evaluate available options to regain compliance.
- If the company does not regain compliance by December 27, 2022, it may qualify for an additional 180-day compliance period if it satisfies applicable market value and other initial listing requirements and provides written notice of its intention to cure the deficiency, potentially through a reverse stock split.
- Nasdaq may determine that the company is ineligible for an additional period or unable to cure the deficiency, in which case the common stock could become subject to delisting.
- The company would have the right to appeal a delisting determination.
- Management stated that there can be no assurance that the company will regain compliance, obtain a second compliance period, or maintain compliance with other Nasdaq listing requirements.
Investor Verification Items
- Verify the registrant’s identity, as the filing names Vallon Pharmaceuticals, Inc., while the request metadata names GRI Bio, Inc.
- Confirm whether the stock regained the $1.00 minimum bid price by December 27, 2022 and whether any additional compliance period was granted.
- Check for any subsequent reverse stock split, Nasdaq delisting notice, appeal, or other listing-status development.
- Review subsequent filings for the company’s liquidity, financing needs, and ability to maintain Nasdaq’s other continued-listing requirements.