CHICAGO - Veradigm Inc. (NASDAQ: MDRX), a healthcare data and technology company, acknowledged today that it will be delisted from the Nasdaq Stock Market due to ongoing noncompliance with specific listing rules.
The company's securities are set to be suspended from trading starting February 29, 2024, following a decision by the Nasdaq Hearings Panel.
The noncompliance issues stem from Veradigm's failure to file its Annual Report on Form 10-K for the year ended December 31, 2022, and its Quarterly Reports on Form 10-Q for the first three quarters of 2023. Moreover, the company has not held an annual meeting of stockholders within the required timeframe, violating another Nasdaq Listing Rule.
Veradigm has expressed its commitment to regaining compliance by filing the overdue financial reports and holding the necessary stockholder meeting as soon as practicable. However, there is no certainty regarding when these reports will be filed or if the company will successfully meet Nasdaq's requirements and relist on The Nasdaq Global Select Market in the future.
Once trading on Nasdaq is suspended, Veradigm expects its shares to be available on an over-the-counter market, maintaining its current ticker symbol (MDRX). The delisting also triggers a "make-whole fundamental change" under the terms of the company's outstanding convertible notes.
The situation at Veradigm is further complicated by an ongoing independent investigation by the Audit Committee concerning the company's financial reporting and internal controls. This inquiry has already led to leadership changes in December 2023 and may uncover additional errors or weaknesses.
Veradigm has informed stakeholders of these developments and the potential for further delays in regaining compliance. The company has also made voluntary disclosures to the U.S. Securities and Exchange Commission and is managing a securities class action lawsuit related to the Audit Committee's investigation.
This article is based on a press release statement from Veradigm Inc. and does not include any speculative content regarding the company's future actions or the broader industry implications.
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