Sharps Technology Inc. (NASDAQ:STSS), a company specializing in surgical and medical instruments, has been notified by The Nasdaq Stock Market LLC of non-compliance with its continued listing standards due to the bid price of its common stock falling below $1.00 for 30 consecutive business days. The notification, dated July 12, 2023, triggered a 180-day period for the company to regain compliance, which was later extended by another 180 days until July 8, 2024.
Despite the extension, Sharps Technology has not been able to meet the minimum bid price requirement set by Nasdaq Listing Rule 5550(a)(2). Consequently, Nasdaq has decided to delist the company's securities unless Sharps Technology requests an appeal hearing by July 16, 2024. If no hearing is requested, trading of the company's common stock and warrants will be suspended at the opening of business on July 18, 2024, followed by the completion of the delisting process.
In response to this development, Sharps Technology plans to file a hearing request before the deadline. Until the hearing takes place, the company's securities are expected to continue trading on NASDAQ under the symbols "STSS" for common stock and "STSW" for warrants.
In addition to the delisting notice, Sharps Technology held a Special Meeting of stockholders on Monday, where stockholders voted on several key proposals. A total of 10,391,140 shares were represented at the meeting, which constituted a quorum.
InvestingPro Insights
As Sharps Technology Inc. (NASDAQ:STSS) faces the challenges of NASDAQ delisting, a closer look at the company’s financial health through InvestingPro data reveals critical insights. With an adjusted market cap of $19.24M, the company shows a negative adjusted P/E ratio of -2.25 for the last twelve months as of Q1 2024, indicating that it is not currently profitable. Additionally, the stock's price has experienced a significant drop of 71.0% over the past year, reflecting the high price volatility that has characterized its trading pattern. The company's operating income also appears strained, with an adjusted loss of $9.65M over the same period.
Addressing the concerns highlighted by InvestingPro Tips, Sharps Technology has not paid dividends to shareholders and has suffered from weak gross profit margins. Moreover, the company has been quickly burning through cash, which is a critical factor for investors to consider. With these financial challenges in mind, potential investors should be aware that Sharps Technology has fared poorly over the last month, with a 22.74% decrease in its 1-month price total return as of the date provided.
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