Virios Therapeutics, Inc. (NASDAQ:VIRI), a pharmaceutical company, announced today that it has been granted an extension by the Nasdaq Stock Market LLC to meet the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The extension was granted after the company submitted a plan to Nasdaq outlining its strategy to regain compliance.
The company, based in Alpharetta, Georgia, received a notice on Monday indicating that it has until October 28, 2024, to raise its common stock's minimum bid price to at least $1.00. This requirement had not been met for the past thirty consecutive business days as of November 7, 2023, leading to Nasdaq's initial notification of potential delisting.
Virios Therapeutics was initially given a 180-day period, ending on April 30, 2024, to address the issue. However, the company was unable to meet the minimum bid price within this timeframe. Consequently, Nasdaq notified the company on May 1, 2024, of its failure to comply and the possibility of delisting. In response, Virios Therapeutics requested a hearing before the Nasdaq Hearing Panel, which took place on June 18, 2024.
The Nasdaq Hearing Panel has now reviewed the company's Expedited Review Questionnaire, submitted on May 8, 2024, and has decided to provide Virios Therapeutics with the extension to meet the listing requirement. If the company cannot achieve compliance by October 11, 2024, it will be required to undertake a reverse stock split to meet the requirement by the new deadline. Failure to comply by October 28, 2024, would result in delisting of the company's securities.
Virios Therapeutics has stated that there is no assurance that a reverse stock split would guarantee compliance with the minimum bid price requirement, nor can it predict the effect such an action might have on its stock price.
This development is based on a press release statement and reflects the current status of Virios Therapeutics regarding its listing on the Nasdaq Capital Market. The company's future actions and their potential impact on its stock price and listing status remain uncertain at this time.
In other recent news, Virios Therapeutics has announced a public stock offering of up to $2.1 million to fund its upcoming Phase 2b study on Long-COVID and support general corporate functions. The completion of this offering is dependent on market conditions, with Maxim (NASDAQ:MXIM) Group LLC serving as the sole placement agent. This follows an effective shelf registration statement filed with the U.S. Securities and Exchange Commission in March and declared effective in April.
In the company's Q1 2024 earnings call, Virios Therapeutics reported a net loss of $1.3 million and cash holdings of $2.4 million as of the end of March 2024. The company is currently advancing their Long-COVID Phase 2 study, holding a global patent for IMC-2, and is in discussions to partner for Phase 3 development of IMC-1 for fibromyalgia treatment.
These recent developments indicate the company's ongoing commitment to its research and drug development programs. While the company reported a net loss for Q1 2024, its capital is expected to fund operations until Q4 2024. Virios Therapeutics has not provided guidance on the expected timing or size of the public stock offering.
InvestingPro Insights
In light of Virios Therapeutics' efforts to maintain its listing on the Nasdaq Capital Market, it is worth considering some key financial metrics and expert analysis from InvestingPro. As of the latest data, Virios Therapeutics holds a market capitalization of approximately $6.21 million and has experienced significant stock price volatility, with a 1-month price total return of -37.0% and a 6-month price total return of -63.57%. Despite the challenges, the company holds more cash than debt on its balance sheet, which could provide some financial flexibility in its strategy to regain Nasdaq compliance.
However, InvestingPro Tips indicate that Virios Therapeutics suffers from weak gross profit margins and is not expected to be profitable this year, with analysts not anticipating profitability for the company within this timeframe. Additionally, with a current P/E ratio of -0.86, reflecting negative earnings, and a price/book ratio of 2.34, investors are cautioned about the company's financial health. These factors are essential considerations for those monitoring the company's progress towards meeting Nasdaq's requirements.
For investors seeking more in-depth analysis and additional InvestingPro Tips on Virios Therapeutics, there are 11 more tips available that could provide further insights into the company's financial state and stock performance. To access these tips and benefit from the comprehensive features of InvestingPro, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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