Chesterbrook, PA-based pharmaceutical company Trevena (NASDAQ:TRVN) Inc. has successfully regained compliance with Nasdaq's Minimum Bid Price Requirement. The company received notification from Nasdaq's Office of General Counsel on Wednesday, August 28, 2024, confirming its adherence to the rule, which mandates that the company's stock maintain a minimum bid price.
In a related development, Trevena also informed stakeholders of its ongoing efforts to meet Nasdaq's Equity Standard Requirement. The Nasdaq Hearings Panel has provided the company with an extension until October 2, 2024, to demonstrate a minimum stockholders' equity of $2.5 million, a prerequisite for continued listing on the Nasdaq Capital Market.
This news follows a series of communications with Nasdaq, beginning with a March 1, 2024, notice where Trevena was warned of non-compliance with the Minimum Bid Price Requirement. The company appealed this initial determination and was granted a hearing.
Subsequently, on April 5, 2024, Trevena was notified of its failure to meet the Equity Standard Requirement. After presenting a compliance plan at a May 2, 2024, hearing, the company was given an extension until August 28, 2024, to satisfy both listing requirements.
Ahead of the August 28 deadline, Trevena communicated its expectations to regain compliance with the Minimum Bid Price Requirement and requested additional time to meet the Equity Standard Requirement. The granted extension to October 2 reflects the maximum 180-day period allowed from the receipt of the initial deficiency notice regarding stockholders' equity.
While Trevena has achieved compliance with the bid price rule, it is actively exploring options to meet the equity requirement. However, the company cautions that there is no guarantee that it will achieve compliance by the new deadline or at all.
This update is based on information disclosed in a recent SEC filing by Trevena Inc .
In other recent news, Trevena Inc. has announced a 1-for-25 reverse stock split, a move designed to meet the Nasdaq Capital Market's minimum bid price requirement for continued listing. In addition to this, the company's investigational drug, TRV045, has shown promising results in preclinical pain and epilepsy studies, exhibiting sustained analgesic effects without desensitizing receptors.
Analyst firms H.C. Wainwright and JMP Securities have both adjusted their stock price targets for Trevena. H.C. Wainwright reduced its price target from $9.00 to $5.00, maintaining a Buy rating, due to uncertainties surrounding TRV045.
Similarly, JMP Securities reduced its price target from $4.00 to $3.00, while keeping its Market Outperform rating, following Trevena's latest financial report and corporate updates.
These developments include the decision to scale back commercial support for its product OLINVYK, in order to conserve capital and reallocate resources towards the development of TRV045. Despite these adjustments, TRV045 remains an investigational product and has not yet been approved by the FDA.
As part of the company's recent developments, Trevena reported ending the fourth quarter of 2023 with approximately $33 million in cash and equivalents.
InvestingPro Insights
As Trevena Inc. navigates the challenges of meeting Nasdaq's listing requirements, a closer look at the company's financial health through InvestingPro data reveals a precarious situation. With a market capitalization of just $3.41 million and a significant sales decline of 82.89% in the last twelve months as of Q2 2024, the company's financial stability is under scrutiny. The revenue has also seen a sharp quarterly decrease of 89.24% in Q2 2024, underscoring the urgency in Trevena's efforts to meet the Equity Standard Requirement.
Moreover, Trevena operates with a significant debt burden and is quickly burning through cash, as highlighted by two of the InvestingPro Tips. These factors are crucial for investors to consider, especially when the company's stock has experienced a substantial price drop of 81.8% over the past year. The InvestingPro platform provides additional context with a total of 16 tips, offering a comprehensive analysis for those looking to understand the full picture of Trevena's financial health.
While Trevena has regained compliance with Nasdaq's Minimum Bid Price Requirement, the InvestingPro Fair Value estimate of $6.05 suggests that the company's stock may be undervalued. However, with the next earnings date set for November 8, 2024, stakeholders will be keenly watching to see if the company can present a viable plan to improve its financial standing and maintain its listing on the Nasdaq Capital Market.
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