Tivic Health Systems, Inc., a company specializing in electromedical and electrotherapeutic apparatus, has received a notice from the Nasdaq Stock Market LLC indicating non-compliance with the exchange's minimum bid price requirement. The notification, dated June 28, 2024, was triggered by the company's common stock closing bid price falling below $1.00 per share for 33 consecutive business days.
Despite the notice, Tivic Health's stock remains listed on the Nasdaq Capital Market, with no immediate impact on its trading status. The company, identified by the ticker NASDAQ:TIVC, has been provided 180 calendar days, until December 26, 2024, to meet the minimum bid price criterion. Compliance can be achieved if the stock's closing bid price reaches or exceeds $1.00 per share for at least 10 consecutive business days before the deadline.
Should Tivic Health fail to meet the requirement by December 26, the company may be granted an additional 180-day grace period, contingent on meeting other market value and listing standards and on notifying Nasdaq of its intent to address the bid price deficiency.
The Fremont, California-based company, incorporated in Delaware, has expressed its intention to actively monitor its stock's closing bid price and explore available options to regain compliance. However, if Tivic Health is unable to rectify the situation within the allotted timeframe, including any extension, it faces the risk of delisting from the Nasdaq Capital Market. The company would then have the right to appeal the decision before a Nasdaq hearings panel.
In other recent news, Tivic Health Systems, a bioelectronic medicine company, has announced the terms for its public offering aimed at raising approximately $4 million. The offering consists of around 4.7 million shares of common stock, accompanied by Series A and Series B warrants for additional shares. Each share is priced at $0.85, with both types of warrants set at the same price. The closing of this offering is expected around May 13, 2024, subject to standard closing conditions, with Maxim (NASDAQ:MXIM) Group LLC acting as the sole placement agent. The proceeds from this offering will reportedly support Tivic Health's ongoing product development and business strategies.
InvestingPro Insights
As Tivic Health Systems Inc. navigates the choppy waters of Nasdaq's minimum bid price requirement, real-time data from InvestingPro paints a detailed picture of the company's financial health. With a market capitalization of just $2.31 million, the company is indeed small, reflecting its niche position in the electromedical and electrotherapeutic apparatus industry. The recent price action has been notably turbulent, with the stock trading near a 52-week low at $0.37 per share, and experiencing a significant 96.41% decline over the past year.
InvestingPro Tips highlight a mixed financial landscape for Tivic Health. On a positive note, the company holds more cash than debt on its balance sheet and liquid assets exceed short-term obligations, indicating a degree of financial stability. Analysts also anticipate sales growth in the current year, suggesting potential for recovery. However, the company is not expected to be profitable this year and has been quickly burning through cash, which may raise concerns about long-term sustainability. Moreover, the stock's high price volatility indicates that investors could face a bumpy ride.
For those considering a deeper dive into Tivic Health's investment potential, InvestingPro offers additional insights and data points. With an exclusive coupon code PRONEWS24, readers can access these resources and save up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. In total, there are 16 more InvestingPro Tips available that could help investors make a more informed decision about Tivic Health Systems Inc.
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