EAGAN, MN - Dynatronics (NASDAQ:DYNT) Corporation (NASDAQ:DYNT), a manufacturer of physical therapy and rehabilitation products, will be delisted from the Nasdaq Stock Market and transition its common stock quotation to the OTCQB Venture Market. This move comes after the company failed to meet Nasdaq's minimum bid price requirement.
The company received notice of its noncompliance from Nasdaq and subsequent delisting will take effect at the market open on July 9, 2024. Dynatronics' common stock is expected to begin trading on the OTCQB immediately following the Nasdaq suspension.
The transition to the OTCQB does not necessitate any action from shareholders and the ticker symbol, as well as the CUSIP number for Dynatronics' common stock, will remain unchanged.
Despite the shift in market listing, Dynatronics will continue to operate as usual and will remain a reporting company under the Securities Exchange Act of 1934. The company's extensive product range is utilized in physical therapy, rehabilitation, orthopedics, pain management, and athletic training. Dynatronics markets its products to a diverse customer base that includes orthopedists, physical therapists, chiropractors, athletic trainers, and various medical facilities.
The company's portfolio includes recognized brands such as Bird & Cronin®, Solaris™, Hausmann®, and PROTEAM™. Dynatronics' commitment to providing high-quality medical devices designed to promote optimal health remains steadfast.
This transition to the OTCQB is part of the company's strategic response to the recurring issue of noncompliance with Nasdaq's listing requirements. The information regarding the delisting and transition is based on a press release statement from Dynatronics Corporation.
InvestingPro Insights
As Dynatronics Corporation (NASDAQ:DYNT) prepares for its transition from the Nasdaq Stock Market to the OTCQB Venture Market, a deeper look at the company's financial health and market performance can be insightful. According to InvestingPro data, Dynatronics currently holds a market capitalization of $1.78 million. This relatively small market cap reflects the challenges the company faces in the competitive medical device sector.
InvestingPro data also highlights the company's significant revenue decline over the last twelve months as of Q3 2024, with a decrease of 22.52%. This downturn is corroborated by an InvestingPro Tip, which indicates that analysts anticipate a sales decline in the current year. Moreover, the company's operating income margin stands at -12.11%, suggesting operational challenges that may have contributed to its delisting predicament.
Investors looking at the stock's recent performance will note that Dynatronics has experienced a 1-month price total return of -19.98%, which aligns with another InvestingPro Tip stating that the stock has fared poorly over the last month. The company's financial difficulties are further underscored by its significant debt burden and its rapid cash burn rate, which are critical factors for potential investors to consider.
For readers seeking a more comprehensive analysis, InvestingPro offers additional tips on Dynatronics Corporation, including insights on valuation multiples and cash flow yield. With a total of 9 InvestingPro Tips available, investors can gain a more detailed understanding of the company's financial position and future prospects. To access these insights, consider subscribing to InvestingPro using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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