In a recent legal development, BioSig Technologies (OTC:BSGM), Inc., a company specializing in electromedical apparatus with a market capitalization of $25.3 million, has successfully defended itself against a lawsuit regarding stock issuance.
According to InvestingPro data, the company's stock has experienced significant volatility, with shares down nearly 70% year-to-date. On Monday, the Hennepin County, Minnesota District Court dismissed the case that alleged the company failed to properly issue stock to Plaintiff Michael Gray Fleming under a restricted stock award agreement.
The lawsuit, filed on March 22, 2024, sought damages of at least $288,000, claiming BioSig Technologies did not meet its obligations in the stock award. The company, along with its former Chief Executive Officer and Chief Financial Officer who were named as defendants, considered the allegations to be without merit.
A hearing to dismiss the claims was held in September 2024, leading to the favorable ruling for BioSig. The company's shares are currently trading at $1.47, significantly below their 52-week high of $5.00.
The court's decision to grant the motion to dismiss on December 3, 2024, closes this chapter for BioSig, allowing the company to move forward without the cloud of this legal dispute. BioSig Technologies, listed on the NASDAQ Capital Market under the ticker BSGM, has its principal executive offices in Los Angeles, California, and is incorporated in Delaware.
The resolution of this case was formally announced today, as per the company's filing with the Securities and Exchange Commission (SEC). This dismissal may provide relief to BioSig Technologies and its stakeholders, as it eliminates the uncertainty and potential financial impact associated with the lawsuit. The company's focus can now return to its core business operations and future growth initiatives within the electromedical sector.
The information for this article is based on a press release statement.
In other recent news, BioSig Technologies, Inc. is facing a potential delisting from the NASDAQ Capital Market due to its share price falling under the required minimum bid price of $1.00. This development was communicated to the company by NASDAQ on October 24, 2024, following a period of non-compliance from June 11, 2024, through October 23, 2024. BioSig has been granted a 180-day compliance period to rectify this issue.
If the company's stock maintains a closing bid price of at least $1.00 for at least ten consecutive business days during this period, NASDAQ will confirm that BioSig has regained compliance, resolving the delisting matter.
Failing to achieve compliance within the allotted time frame, BioSig could still be eligible for an additional compliance period, provided it meets all other initial listing standards for The NASDAQ Capital Market, barring the bid price requirement.
As a potential solution, the company could consider a reverse stock split to address the bid price deficiency. These recent developments underscore the importance of compliance with stock market regulations for public companies.
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