GRI Bio, Inc., a pharmaceutical company, has received notification from the Nasdaq Stock Market that it is currently not in compliance with the exchange's minimum bid price requirement. On Monday, the company was informed that its common stock had closed below the minimum $1.00 bid per share for 30 consecutive business days, putting its listing at risk.
The company, which trades under the ticker GRI on the Nasdaq Capital Market, has been given a 180-day period, until March 10, 2025, to regain compliance. To meet the requirements, GRI Bio's common stock must maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive business days within this timeframe. The Nasdaq may extend this 10-day period at its discretion.
Should GRI Bio fail to achieve the minimum bid price by the deadline, it may be granted an additional 180-day compliance period, provided it meets the Nasdaq's conditions. However, if the stock's closing bid price falls to $0.10 or less for ten consecutive trading days before March 10, 2025, Nasdaq will issue a Staff Delisting Determination.
The notice from Nasdaq does not immediately affect GRI Bio's listing, and the company's trading on the market continues. GRI Bio is considering various options to resolve the issue and regain compliance with the Nasdaq's minimum bid price requirement. There is no certainty that the company will be able to meet the necessary conditions within the given timeframe.
The notification of potential delisting is a significant development for GRI Bio, which was formerly known as Vallon Pharmaceuticals, Inc. before changing its name on September 10, 2020. The company, headquartered in La Jolla, California, specializes in pharmaceutical preparations and is incorporated in Delaware.
This news is based on a recent SEC filing by the company.
In other recent news, GRI Bio has reported several significant developments. In its recent shareholder meeting, the company approved the issuance of common stock and an equity plan amendment, elected a director, and ratified an accounting firm.
GRI Bio also reported positive preclinical data for its drug candidate, GRI-0621, and announced a public offering of over 2 million shares of common stock and Series C warrants, expected to generate about $4 million.
The company has expanded its at-the-market offering program, which allows for the issuance of an aggregate of $2,644,609 worth of the company's common stock. GRI Bio also initiated a 1-for-13 reverse stock split, reducing the total outstanding shares from approximately 6.6 million to about 508,091 shares.
In terms of compliance, GRI Bio has regained compliance with Nasdaq's listing standards, canceling a previously scheduled hearing with the Nasdaq Hearings Panel.
The company has also been granted patents by the Korean Intellectual Property Office and the Canadian Intellectual Property Office, strengthening its global intellectual property portfolio. These are the recent developments in GRI Bio's ongoing research and development efforts, financial strategies, and corporate governance.
InvestingPro Insights
As GRI Bio, Inc. faces the challenge of meeting Nasdaq's minimum bid price requirement, real-time data from InvestingPro offers insights into the company's current financial position. With a market capitalization of just $1.53 million and a previous closing price of $0.52, the company is significantly below the Nasdaq's minimum bid price. The stock's performance has been notably poor, with a one-year price total return of -99.52%, indicating a steep decline in investor confidence.
InvestingPro Tips highlight that GRI Bio holds more cash than debt on its balance sheet, which could provide some liquidity to navigate the current situation. However, the company is not profitable over the last twelve months, and the stock has been in a persistent downtrend, with significant price drops over the last year and three months. These factors may weigh on the company's efforts to regain compliance with Nasdaq's requirements.
For investors looking for a deeper analysis, InvestingPro offers additional tips on GRI Bio's financial health and stock performance. With the company's next earnings date scheduled for November 14, 2024, stakeholders will be keenly watching for signs of improvement that could influence the stock's trajectory. For a more comprehensive set of InvestingPro Tips related to GRI Bio, visit https://www.investing.com/pro/GRI.
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