Evoke Pharma Inc. (NASDAQ:EVOK) has been notified by the Nasdaq Stock Market that its stock price has not met the minimum bid price requirement for continued listing on The Nasdaq Capital Market. The pharmaceutical company's common stock has closed below the $1.00 threshold for thirty consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
The notice, received on Tuesday, triggers a 180-day period, ending on August 19, 2024, for Evoke Pharma to regain compliance. To achieve this, the company's common stock must maintain a closing bid price of at least $1.00 for ten consecutive business days before the deadline.
While the notification from Nasdaq has no immediate impact on Evoke Pharma's stock trading, which continues under the ticker EVOK, it does put the company on alert to address the issue. Evoke Pharma has expressed its intention to monitor its stock's bid price closely and evaluate potential strategies to meet Nasdaq's requirements within the given timeframe.
If compliance is not regained by August 19, 2024, Evoke Pharma may qualify for a second 180-day grace period, provided it meets all other initial listing standards except the bid price. The company would then have to inform Nasdaq of its plans to rectify the deficiency, which may include a reverse stock split.
Should the company fail to meet the criteria or appear unlikely to do so, Nasdaq staff may initiate delisting proceedings. Evoke Pharma would have the right to appeal this decision, although there is no guarantee that the appeal would result in a continuation of its listing.
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