Cardio Diagnostics Holdings, Inc. (NASDAQ:CDIO), a company specializing in in vitro and in vivo diagnostic substances with a market capitalization of $12.15 million, has been granted an additional 180-day compliance period by The Nasdaq Stock Market LLC to meet the minimum bid price requirement. This extension follows the initial 180-day period provided after the company's stock price fell below the $1.00 minimum bid price threshold established by Nasdaq Listing Rule 5550(a)(2).
The company received the first notification of non-compliance on June 3, 2024, and was given until December 2, 2024, to rectify the situation. As of today, the company has not achieved compliance, with its stock trading at $0.30, down nearly 79% over the past year. According to InvestingPro analysis, which offers 12 additional investment insights, the stock's price movements have been notably volatile.
However, in a letter dated today, Nasdaq confirmed that Cardio Diagnostics is eligible for an extra 180 days, or until June 2, 2025, to regain compliance, based on the company's current market value of publicly held shares and other requirements for initial listing on The Nasdaq Capital Market, excluding the Minimum Bid Price Requirement.
Cardio Diagnostics has indicated its intention to cure the deficiency within this second compliance period and is considering all possible options, including a reverse stock split if necessary. While the company maintains a positive aspect of holding more cash than debt on its balance sheet, InvestingPro data indicates it's quickly burning through cash reserves. Subscribers to InvestingPro can access detailed financial health metrics and real-time valuations to better assess the company's prospects. The company must complete any reverse stock split at least ten business days before the end of the Second Compliance Period to regain compliance in a timely manner.
Cardio Diagnostics Holdings, Inc., headquartered in Chicago, Illinois, remains focused on resolving the minimum bid price deficiency and is actively exploring strategies to ensure compliance with Nasdaq's requirements. The company's current ratio of 8.51 suggests strong short-term liquidity, though its overall financial health score from InvestingPro indicates challenges ahead.
In other recent news, Cardio Diagnostics Holdings, Inc. made substantial strides towards obtaining Medicare reimbursement for its PrecisionCHD and Epi+Gen CHD tests. The Centers for Medicare & Medicaid Services (CMS) have given preliminary pricing determinations for these tests, which aim to improve coronary heart disease (CHD) risk assessment and management. This decision, pending finalization, will apply to claims starting January 1, 2025.
Additionally, Cardio Diagnostics shareholders recently approved several significant proposals. These included a potential reverse stock split and the future issuance of shares of common stock or securities convertible into common stock. The appointment of Prager Metis CPA’s LLC as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was also ratified.
The independent analyst firm, Benchmark, has increased its price target for Cardio Diagnostics shares, maintaining a Speculative Buy rating due to a positive outlook on the company's market prospects. Cardio Diagnostics also reported a cash balance of $1.6 million at the end of the first quarter of 2024.
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