Naples, FL-based Enveric Biosciences Inc. (NASDAQ:ENVB), a pharmaceutical preparations company, has received a delisting notice from the Nasdaq Stock Market due to its failure to meet the minimum bid price requirement. The company's stock did not maintain the $1.00 minimum bid per share over the past 30 consecutive business days, as required by Nasdaq Listing Rule 5550(a)(2).
The initial notification from Nasdaq was received on May 16, 2024, granting Enveric Biosciences a 180-day period to regain compliance. However, by the compliance deadline of November 12, 2024, the company had not met the minimum bid price requirement. Additionally, Enveric was ineligible for a second 180-day extension as it did not meet the minimum stockholders' equity requirement of $5,000,000 for continued listing on the Nasdaq Capital Market.
Following the failure to regain compliance, Nasdaq issued a determination on November 20, 2024, stating that Enveric's listed shares would be delisted unless the company appealed the decision. Enveric Biosciences plans to request a hearing before the Nasdaq Listing Qualifications Panel to appeal the delisting determination.
The appeal will temporarily stay the delisting process, allowing Enveric Biosciences to present its plan to regain and sustain compliance with Nasdaq's requirements. The Panel has the authority to grant the company up to an additional 180 days from November 20, 2024, to meet the minimum bid price criterion. However, the Panel may also impose more stringent criteria for continued listing or proceed with delisting actions.
The outcome of the hearing and the overall appeal process remains uncertain, with no guarantee that the Panel will extend the compliance period or that Enveric Biosciences will ultimately satisfy the requirements for continued listing on the Nasdaq Capital Market. This information is based on a press release statement.
In other recent news, Enveric Biosciences has entered a licensing agreement with MycoMedica Life Sciences. The deal includes the development and commercialization of Enveric's drug candidate EB-002, a synthetic prodrug of psilocin, targeting neuropsychiatric disorders. The agreement could yield up to $62 million in payments and royalties for Enveric, given certain conditions are met.
Simultaneously, Enveric has secured five new US patents for its proprietary library of over 1,000 tryptamine derivative molecules, known as Psybrary™. This expansion potentially broadens the therapeutic applications of Enveric's drug candidates.
Furthermore, Enveric's preclinical lead candidate, EB-003, is being developed for treatment-resistant depression and anxiety, with an Investigational New Drug application planned for 2025.
Additionally, Enveric secured a patent for a CBD-based lotion developed in collaboration with Aries Science & Technology, aimed at treating radiation dermatitis. This development could potentially benefit two million cancer patients annually.
Lastly, Enveric has entered into strategic partnerships, including licensing its Novel Psilocin Prodrugs to MindBio Therapeutics and out-licensing its patented cancer treatment methods to an undisclosed licensee.
InvestingPro Insights
Recent data from InvestingPro sheds light on Enveric Biosciences' (NASDAQ:ENVB) financial situation, providing context to its delisting notice. The company's market capitalization stands at a mere $3.02 million, reflecting its precarious position. InvestingPro Tips indicate that ENVB is "quickly burning through cash" and "not profitable over the last twelve months," which aligns with the company's struggle to meet Nasdaq's listing requirements.
The stock's performance has been particularly troubling, with InvestingPro data showing a 75.94% price decline over the past year and a 74.08% drop year-to-date. This poor performance is further emphasized by the fact that the stock is trading at just 11.4% of its 52-week high, currently priced at $0.34.
Despite these challenges, an InvestingPro Tip notes that ENVB "holds more cash than debt on its balance sheet," which could potentially provide some flexibility as the company navigates its appeal process. However, with analysts not anticipating profitability this year and the stock's valuation implying a poor free cash flow yield, Enveric faces an uphill battle in its efforts to regain compliance.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for ENVB, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.