INVO Bioscience receives Nasdaq compliance extension

Published 20/06/2024, 22:24
INVO Bioscience receives Nasdaq compliance extension

SARASOTA, FL—INVO Bioscience, Inc. (NASDAQ:INVO), a medical device company specializing in fertility treatment, has been granted an extension by The Nasdaq Stock Market to regain compliance with listing requirements. The extension, announced on Thursday, follows a hearing with the Nasdaq Hearing Panel on June 6, 2024, where INVO Bioscience sought additional time to meet the standards.

The company, headquartered in Sarasota, Florida, faced potential delisting after a notification on April 17, 2024, indicated that its stockholders' equity did not meet the Nasdaq’s minimum requirement of $2.5 million as of December 31, 2023. INVO Bioscience was not eligible for the standard 180-day grace period to comply with the Equity Rule due to previous non-compliance issues.

During the June 6 hearing, INVO Bioscience requested an extension until October 14, 2024, to complete an acquisition of NAYA Biosciences, Inc., which the company believes will enable it to satisfy Nasdaq’s initial listing requirements. The Panel has granted the company's request for continued listing on the Exchange, subject to the condition that the company demonstrates compliance with Nasdaq’s Listing Rule 5505.

In related news, on June 13, 2024, Wood Violet Fertility, LLC, a subsidiary of INVO Bioscience, transferred ownership of Wisconsin Fertility and Reproductive Surgery Associates, S.C. (WFRSA) to Donna Baldwin, D.O.

The transaction resulted in the separation of employment from Dr. Elizabeth Pritts, M.D., the former owner, officer, and director of WFRSA. The company has stated that this change in ownership and personnel is not expected to materially affect WFI’s operations or the financial condition of INVO Bioscience.

INVO Bioscience continues to operate under its existing management services agreement with WFI, and the company believes that the recent changes will not impact patient care or WFI’s operational or financial performance.

The information reported is based on a recent SEC filing by the company.

InvestingPro Insights

In light of INVO Bioscience's efforts to regain compliance with Nasdaq's listing requirements, recent data from InvestingPro provides a snapshot of the company's financial health and market performance. As of the last twelve months leading up to Q1 2024, INVO Bioscience has experienced a substantial revenue growth of 321.67%, indicating a potential positive trajectory in sales.

Still, this growth comes amidst significant financial challenges, with the company operating at an operating income margin of -127.26% and a concerning return on assets of -57.87%. These figures underscore the company's urgent need for strategic maneuvers, such as the acquisition of NAYA Biosciences, to stabilize its financial standing.

InvestingPro Tips suggest that INVO Bioscience operates with a significant debt burden and is quickly burning through cash, which may explain the company's high price volatility and the fact that short term obligations exceed liquid assets. These insights could be crucial for investors monitoring INVO's compliance journey and overall stability. Moreover, it is noteworthy that analysts do not anticipate the company will be profitable this year, aligning with the company's current negative P/E ratio of -0.51.

For investors seeking a deeper analysis, InvestingPro offers additional tips on INVO Bioscience, providing further clarity on the company's financial and market position. Interested parties can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking exclusive insights and data to better inform their investment decisions. With a total of 11 additional InvestingPro Tips available, investors can gain a comprehensive understanding of INVO Bioscience's potential risks and opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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