Titan Medical (Nasdaq:TMDI) announced today that it received an additional 180 days to regain compliance with the Nasdaq market.
According to a news release, the Listing Qualifications Staff of The Nasdaq Stock Market notified the company that it received 180 extra calendar days — running through Dec. 26, 2022 — to evidence compliance with the $1 minimum bid price requirement for continued listing on the market.
Shares of TMDI were down 7.3% at close to 54¢ per share in mid-afternoon trading today.
If at any time before Dec. 26, the bid price for the company’s common shares closes at or above $1 per share for a minimum of 10 consecutive business days (and generally not more than 20 consecutive business days, in Nasdaq’s discretion), it is expected that Nasdaq would provide formal notice that the company has regained compliance with the bid price requirement.
Should Titan not evidence compliance with the minimum bid price during the 180-day grace period, the company expects that Nasdaq would notify the company that its shares are subject to delisting. This is not the first time the company has flirted with delisting, after Nasdaq sent it a Staff Delisting Determination letter in May 2020 claiming that Titan had failed to comply with a rule that listed companies must have a minimum of $2.5 million in stockholders’ equity, $35 million in market value of listed securities, or $500,000 in net income from continuing operations.
If the company is subject to delisting, it may appeal such determination to a Nasdaq Hearings Panel. Titan expects that its securities would continue to be listed and available to trade on Nasdaq at least pending the completion of the appeal process, but there can be no assurance that an appeal would be successful or that the company would be able to evidence compliance with the terms of any extension that may be granted.
Nasdaq’s notification does not impact Titan’s compliance or listing on the Toronto Stock Exchange, Titan said.