TEL AVIV - PainReform Ltd. (NASDAQ:PRFX), a specialty pharmaceutical company, has been notified by Nasdaq that it is not meeting the minimum bid price requirement, the company disclosed today. The Nasdaq Listing Qualifications department issued a letter to PainReform indicating its failure to maintain the required $1.00 minimum bid price per share.
The notification, which does not immediately affect the trading of PainReform's ordinary shares, sets a 180-day deadline for the company to regain compliance. This period extends from May 28, 2024, to November 25, 2024. To achieve compliance, PainReform's shares must close at $1.00 or higher for at least ten consecutive business days.
Should PainReform fail to meet the criteria within this timeframe, it may be granted an additional period if it meets all other initial listing standards for the Nasdaq Capital Market, except for the bid price. However, if compliance is not demonstrated within the granted periods, Nasdaq will notify the company of its potential delisting.
During the compliance period, PainReform shares will continue to be traded on the Nasdaq Capital Market under the symbol PRFX.
PainReform is known for its clinical-stage work in reformulating established therapeutics. Its lead product, PRF-110, is based on ropivacaine, an anesthetic aimed at providing extended postoperative pain relief. The company's proprietary drug-delivery system is designed to reduce the need for repeated dosing and minimize the reliance on opiates.
This announcement is based on a press release statement from PainReform Ltd. and does not reflect any changes to the company's operations or its ongoing clinical programs.
InvestingPro Insights
PainReform Ltd. (NASDAQ:PRFX) is currently navigating a challenging phase, as reflected in its stock performance and financial metrics. According to the latest data from InvestingPro, the company's market capitalization stands at a modest $1.76 million. This valuation comes amidst a backdrop of significant price declines over various timeframes, with a 1-month price total return of -23.12%, a 3-month return of -62.63%, and a staggering 1-year price total return of -84.57%.
The financial health of PainReform is also a concern for investors, as highlighted by an InvestingPro Tip that notes the company is quickly burning through cash. This situation is mirrored in the company's operating income, which shows an adjusted loss of $12.73 million for the last twelve months as of Q1 2024. Moreover, the Return on Assets for the same period is deeply negative at -158.88%, indicating that the company's assets are not generating value effectively.
Investors considering PainReform as a potential opportunity should be aware of these challenges. However, it is worth noting that the company holds more cash than debt on its balance sheet, which is a positive sign in terms of liquidity and financial flexibility. This could provide some cushion as the company strives to regain compliance with Nasdaq's listing requirements.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics. There are currently 9 more InvestingPro Tips available for PainReform, which can be accessed by visiting https://www.investing.com/pro/PRFX. For readers looking to take advantage of these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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