Business Context and Reporting Period
This Form 8-K was filed by RXi Pharmaceuticals Corporation (also referred to as Phio Pharmaceuticals Corp. in metadata) on August 2, 2017. The report addresses the status of the Company's listing on The Nasdaq Capital Market.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The only financial metric disclosed is the stock's closing bid price, which had remained below the minimum requirement of $1.00 per share for 30 consecutive business days prior to the initial notification.
Material Changes
The Company failed to regain compliance with Nasdaq Listing Rule 5550(a)(2) by the initial deadline of August 1, 2017. Consequently, Nasdaq granted the Company an additional 180-day compliance period, extending until January 29, 2018. This extension was granted because the Company met all other initial listing requirements, including the market value of publicly held shares, and submitted a written notice of its intention to cure the deficiency.
Outlook, Management Commentary, and Risks
Management intends to monitor the closing bid price of its common stock. To regain compliance, the Company may implement available options, including a reverse stock split, if necessary. The primary risk is the potential delisting from The Nasdaq Capital Market if the Company fails to maintain a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days during the second compliance period.
Investor Verification Checklist
- Verify the current closing bid price of RXi Pharmaceuticals common stock to assess proximity to the $1.00 threshold.
- Monitor for any official announcements regarding the implementation of a reverse stock split.
- Confirm the Company's continued compliance with other Nasdaq listing standards, such as the market value of publicly held shares.
- Review future filings for updates on the status of the compliance period ending January 29, 2018.