Relmada Therapeutics (NASDAQ:RLMD), Inc., a pharmaceutical company currently trading at $0.39 and showing a significant 89% decline over the past year according to InvestingPro data, has been alerted by the Nasdaq Stock Market of non-compliance with the minimum bid price requirement, according to a recent 8-K filing with the Securities and Exchange Commission.
The company's stock, which InvestingPro analysis suggests is slightly undervalued, has not maintained the $1 minimum bid price over the past 30 consecutive business days as of January 17, 2025.
The notification, received on Monday, January 21, 2025, does not immediately affect the company's listing. Relmada has been granted a 180-day compliance period, which concludes on July 21, 2025, to meet the minimum bid price criterion. The company’s stock must close at $1 or higher for at least ten consecutive business days within this timeframe to regain compliance. If Relmada opts for a reverse stock split to address the issue, it must be executed at least ten days before the compliance period ends.
Relmada Therapeutics has expressed its intent to actively monitor its bid price and to consider all reasonable measures to comply with Nasdaq's continued listing requirements. However, if the company fails to meet the criteria by the deadline, it may receive a delisting notice or could potentially transfer its listing to the Nasdaq Capital Market if it meets the criteria for that exchange.
The company's plans to maintain its Nasdaq listing are underway, but it is not guaranteed that compliance will be regained or maintained. This situation is critical for Relmada, as continued listing on a major exchange often provides companies with greater visibility and liquidity for their stocks.
While InvestingPro data shows the company maintains a strong current ratio of 6.89 and holds more cash than debt, its overall financial health score is rated as WEAK. The company's most recent Annual Report and subsequent SEC filings provide further details on risk factors that could influence its ability to maintain compliance with Nasdaq's listing standards. For deeper insights into Relmada's financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Relmada Therapeutics has seen significant developments. The company appointed Paul Kelly as its new COO and has implemented a pay freeze for top executives to reduce expenses. This comes amidst financial challenges, with analysts not anticipating profitability this year. Relmada's Phase 3 trial for major depressive disorder, REL-1017, was deemed futile by the Data Monitoring Committee, leading to stock rating downgrades by Mizuho (NYSE:MFG) Securities and Leerink Partners.
Despite this setback, the company continues its development of another product, REL-P11, currently in Phase 1 trials. Relmada maintains a strong financial position, with $54 million in cash reserves reported at the end of the third quarter of 2024. However, its Q3 financials also reported a net loss of $21.7 million, with research and development expenses rising to $11.1 million.
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