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BANGKOK - NewGenIvf Group Limited (NASDAQ: NIVF), an Asia-based fertility services provider, has been notified by the Nasdaq Stock Market of non-compliance with the exchange's minimum bid price requirement. The company's shares have been trading below the $1 threshold for 30 consecutive business days, according to a Deficiency Letter from Nasdaq's Listing Qualifications Department.
The notification, dated October 8, 2024, triggers a 180-day period ending April 7, 2025, for NewGenIvf to regain compliance. The company must maintain a closing bid price of at least $1 for ten consecutive business days within this timeframe to meet Nasdaq's standards. Failure to achieve compliance by the deadline could result in delisting from the exchange.
NewGenIvf has stated its intention to monitor its share price closely and explore available options to address the deficiency. The current trading status of NewGenIvf's Class A Ordinary Shares remains unaffected, with trading set to continue under the ticker symbol NIVF.
The company, with clinics in Thailand, Cambodia, and Kyrgyzstan, offers a range of fertility treatments, including assisted reproductive technology, egg and sperm donation, and surrogacy where permitted by law. The management team boasts over a decade of experience in the fertility industry.
This announcement is in line with Nasdaq Listing Rule 5810(b), which mandates prompt public disclosure of such notifications. The Deficiency Letter does not immediately impact NewGenIvf's listing, allowing for uninterrupted trading on the Nasdaq.
The press release also contains forward-looking statements regarding NewGenIvf's future operations, which are subject to various risks and uncertainties that could cause actual results to differ from expectations. These statements are protected under the U.S. Private Securities Litigation Reform Act of 1995.
Investors are cautioned to consider these risk factors and uncertainties, detailed in NewGenIvf's annual report on Form 20-F and other filings with the SEC, which may influence the company's actual future performance. The information provided is based on the current state as of the date of the press release, with no obligation from the company to update any forward-looking statements unless required by law.
InvestingPro Insights
NewGenIvf Group Limited's recent Nasdaq notification comes amid a challenging financial landscape for the company. According to InvestingPro data, NIVF has experienced a significant price decline, with a -90.94% total return over the past year. This aligns with the company's struggle to maintain the $1 minimum bid price required by Nasdaq.
Despite these challenges, InvestingPro Tips highlight that NIVF has shown a "Significant return over the last week" and a "Strong return over the last month," with 1-week and 1-month price total returns of 56.32% and 40.28% respectively. This recent uptick could be crucial as the company works to regain compliance with Nasdaq's listing requirements.
However, investors should note that NIVF is "Trading at a high earnings multiple," with a P/E Ratio (Adjusted) of 76.4 for the last twelve months as of Q4 2023. This high valuation, coupled with the fact that the company is "Quickly burning through cash," may pose additional challenges as NewGenIvf navigates its current situation.
For a more comprehensive analysis, InvestingPro offers 12 additional tips for NIVF, providing deeper insights into the company's financial health and market position.
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