Business Context and Reporting Period
This Form 8-K was filed by Capricor Therapeutics, Inc. on June 27, 2017. The report addresses regulatory notices received from the Nasdaq Stock Market regarding the Company's compliance with continued listing standards.
Key Financial Metrics
This filing does not contain specific financial statements, revenue, profit, cash flow, or debt figures. The only quantitative financial metric disclosed is the Company's market capitalization, which fell below the minimum required threshold of $35 million for the Nasdaq Capital Market.
Material Changes and Listing Notices
- Market Value Deficiency: On June 27, 2017, the Company received notice that its market capitalization was below the $35 million minimum required under NASDAQ Rule 5550(b)(2).
- Bid Price Deficiency: On June 29, 2017, the Company received notice that its common stock closing bid price fell below $1.00 per share for 30 consecutive business days, violating NASDAQ Rule 5550(a)(2).
- Compliance Period: The Company has a 180-day grace period expiring on December 26, 2017, to regain compliance for both deficiencies.
- Compliance Requirements: To regain compliance, the Company must maintain a market value of listed securities of at least $35 million and a minimum closing bid price of $1.00 per share for 10 consecutive business days during the grace period.
Outlook, Risks, and Management Commentary
Management states that the Company is evaluating potential actions to regain compliance. While the Company anticipates that its shares will continue to be listed and traded during the compliance period, there is no assurance that it will successfully meet the listing standards. If the Company fails to regain compliance by December 26, 2017, it may face delisting, at which point it could request a hearing to remain on the Nasdaq Capital Market.
Investor Verification Checklist
- Verify the current market capitalization and stock price to assess progress toward the $35 million and $1.00 thresholds.
- Monitor the Company's announcements regarding specific actions taken to regain compliance (e.g., reverse stock splits or capital raises).
- Review the December 26, 2017 deadline for the expiration of the 180-day compliance period.
- Check for any subsequent filings regarding a potential delisting determination or hearing requests.