OneMedNet Corporation, a firm specializing in commercial physical and biological research, has been notified by The Nasdaq Stock Market LLC of non-compliance with the exchange's minimum bid price rule. On October 16, 2024, the company's common stock had not met the $1.00 minimum bid price required for continued listing on The Nasdaq Capital Market for 30 consecutive business days.
This notification does not immediately affect OneMedNet's listing or trading on Nasdaq but serves as a warning of potential delisting if compliance is not regained. OneMedNet has until April 14, 2025, to raise its common stock's minimum bid price to $1.00 for at least ten consecutive business days.
Should the company fail to achieve compliance within this 180-day period, it may be granted an additional 180 days if it meets certain conditions, including a possible reverse stock split. However, the company risks delisting if Nasdaq believes it will not be able to remedy the deficiency or if it fails to meet other listing standards.
OneMedNet, headquartered in Eden Prairie, MN, is considering its options to address the minimum bid price deficiency and is committed to efforts to maintain its Nasdaq listing. Nevertheless, there is no guarantee that OneMedNet will succeed in regaining or maintaining compliance with the Nasdaq listing requirements. This information is based on a press release statement from OneMedNet.
In other recent news, OneMedNet Corporation is facing potential Nasdaq delisting due to non-compliance with several listing requirements, including a shortfall in its Market Value of Listed Securities and net income from continuing operations. The company has been granted a 180-day period to regain compliance.
On a positive note, OneMedNet recently secured approximately $1.7 million in follow-on funding from a private placement with an affiliate of Off the Chain Capital. The proceeds are intended for working capital and general corporate purposes, with a portion allocated for the purchase of Bitcoin.
Additionally, the company faces another potential Nasdaq delisting due to delayed financial reporting. OneMedNet is working with its new auditing firm, WithumSmith+Brown, PC, to complete the necessary filings. In a significant leadership transition, OneMedNet announced the appointment of Bob Golden as Chief Financial Officer, who brings over four decades of financial management experience to the role.
The company also announced the appointment of Robert Golden as interim CFO following the departure of Lisa Embree. This comes with a consulting agreement that includes a monthly salary and a grant of restricted stock units.
InvestingPro Insights
The recent notification from Nasdaq regarding OneMedNet's non-compliance with the minimum bid price rule aligns with several key financial metrics and insights from InvestingPro. The company's market cap stands at a modest $22.42 million, reflecting its current challenges. InvestingPro Tips highlight that OneMedNet's price has fallen significantly over the last year, which is evident in the stark 93.83% one-year price total return decline.
The company's financial health appears precarious, with InvestingPro data showing a negative gross profit margin of -12.52% for the last twelve months as of Q4 2023. This is consistent with the InvestingPro Tip indicating that OneMedNet suffers from weak gross profit margins. Additionally, the company is not profitable over the last twelve months, as reflected in its negative operating income of -$8.37 million.
These financial indicators provide context to OneMedNet's struggle to maintain its Nasdaq listing and underscore the challenges it faces in raising its stock price above the $1.00 threshold. Investors considering OneMedNet's situation may find value in exploring the additional 7 InvestingPro Tips available, which could offer further insights into the company's financial position and prospects.
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