Propanc Biopharma has been warned that its shares no longer meet Nasdaq’s $1 minimum bid-price requirement. The company says it plans to appeal a decision that would otherwise delist its stock from the Nasdaq Capital Market on Nov. 2, and believes it has since corrected the deficiency.
- Why Nasdaq acted: Propanc’s closing bid price was below $1 for 30 consecutive business days through Oct. 21. The company is not eligible for the usual 180-day period to regain compliance because it completed a reverse stock split within the prior year.
- Appeal deadline and timing: Propanc must request a hearing by Oct. 30 to challenge the delisting. The company says it intends to appeal. If it does, the delisting is stayed while the hearing panel considers the case, and the shares remain listed in the meantime.
- Company’s position: Propanc says it believes it cured the bid-price deficiency after receiving the notice. It did not describe the steps taken or provide details about the share price’s subsequent performance.
- Potential consequences: If the shares are ultimately delisted, Propanc says trading liquidity and the stock price could suffer. Delisting could also reduce investors’ willingness to hold or buy the shares, make equity financing more difficult, limit the company’s ability to sell freely tradable securities through a registration statement, and impair its use of stock-based employee incentives.
- Business operations: The notice does not itself affect Propanc’s business, operations or reporting obligations.
The immediate issue is the listing appeal and the company’s ability to maintain Nasdaq’s minimum-price standard; the company’s stated belief that it has cured the problem does not resolve the matter before the hearing panel.