Healthcare Triangle, Inc., a Delaware-based company specializing in computer integrated systems design, has received a delisting determination from Nasdaq due to non-compliance with the minimum stockholders' equity requirement.
The company, which trades under the symbol HCTI on the Nasdaq Capital Market, was initially notified of its non-compliance on March 20, 2024, and was given until September 16, 2024, to regain compliance.
On September 3, 2024, the company was informed that it had not met the terms of the extension as it failed to complete proposed transactions necessary to evidence compliance with the $2,500,000 stockholders' equity requirement set forth in Nasdaq Listing Rule 5550(b)(1).
As a result, the company's common stock is facing suspension of trading at the opening of business on September 12, 2024, with a Form 25-NSE to be filed with the SEC, which will formally remove the company’s securities from listing and registration on Nasdaq.
However, Healthcare Triangle intends to request a hearing with the Nasdaq Hearings Panel by September 10, 2024, 4:00 p.m. Eastern Time. This action will stay the suspension and the delisting process until the Panel reaches a decision. At the hearing, the company plans to present a plan to regain compliance with the stockholders' equity requirement.
During this period, the common stock of Healthcare Triangle will continue to be traded on the Nasdaq Capital Market. The company has cautioned that there is no guarantee that the Panel will accept its plan or that it will be able to achieve compliance with the Nasdaq listing requirements.
A delisting could potentially make it more difficult to trade the company’s common stock, affect accurate price quotations, and significantly impact the stock's value. It could also impair the company's ability to raise capital.
In other recent news, Healthcare Triangle, Inc. is facing a potential delisting from the Nasdaq Stock Market due to non-compliance with the minimum bid price requirement.
The company has been notified of its common stock closing below the required $1.00 per share for 30 consecutive business days, a violation of Nasdaq's Listing Rule 5550(a)(2). To regain compliance, Healthcare Triangle's bid price must close at $1.00 per share or higher for at least ten consecutive business days within a 180-day period ending December 23, 2024.
Should the company fail to meet this requirement by the deadline, it may qualify for an additional 180 days to regain compliance, contingent upon meeting all other initial listing standards for the Nasdaq Capital Market, except for the Bid Price Rule.
The company has stated it is actively exploring options to address the compliance issue. However, it is important to note that there is no guarantee of meeting the Nasdaq's requirements within the given period or maintaining compliance with other listing criteria.
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