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SOUTH SAN FRANCISCO - Spruce Biosciences, Inc. (OTC: SPRB), currently trading at $0.06 and down over 85% year-to-date according to InvestingPro data, has received approval from Nasdaq to resume trading on the Nasdaq Capital Market, contingent upon the company regaining compliance with the minimum bid price requirement by August 5, 2025.
The late-stage biopharmaceutical company, which focuses on developing therapies for neurological disorders and currently has a market capitalization of just $2.57 million, is seeking stockholder approval for a reverse stock split at its upcoming annual meeting on July 22. The company’s board believes this measure is necessary to meet Nasdaq’s minimum bid price requirement. InvestingPro analysis indicates the company’s overall financial health score is rated as WEAK, with significant challenges in profitability and cash flow metrics.
"We are pleased by Nasdaq’s decision to lift its trading suspension and resume trading of our common stock on or before August 5, 2025, subject to our compliance with the minimum bid price requirement," said Samir Gharib, President and Chief Financial Officer of Spruce, according to a company press release.
The board has outlined several potential benefits of the reverse stock split, including generating broader investor interest, enabling future financing activities, and helping attract and retain employees. The company noted that some institutional investors have policies prohibiting investments in lower-priced stocks, and brokerage firms may be reluctant to recommend such securities to clients.
Stockholders of record as of May 30, 2025, are encouraged to vote on the proposal by July 21. The annual meeting will be held virtually on July 22 at 11:00 a.m. Pacific Time.
Spruce Biosciences, previously trading on the over-the-counter market, is working to return to the Nasdaq exchange where it would potentially gain greater visibility and liquidity for its shares. For a comprehensive analysis of SPRB’s financial health and future prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers key metrics and expert insights for over 1,400 US stocks.
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