Check-Cap receives Nasdaq compliance notice and announces asset acquisition

Published 05/09/2025, 22:04
Check-Cap receives Nasdaq compliance notice and announces asset acquisition

Check-Cap Ltd. (NASDAQ:CHEK) reported several regulatory and business updates Friday in a statement based on an SEC filing.

The company disclosed that on Wednesday it received a letter from the Nasdaq Listing Qualifications Department stating that it is not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum of $2,500,000 in stockholders’ equity. Check-Cap has 45 calendar days, until October 20, 2025, to submit a plan to regain compliance. If the plan is accepted, Nasdaq may grant an extension of up to 180 days from the date of the notice. If not accepted, Check-Cap will have the opportunity to appeal the decision to a Nasdaq Hearings Panel.

In a separate update, Check-Cap announced that the Nasdaq Listing Qualifications Department determined the company now complies with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports. This follows the company’s filing of its annual report on Form 20-F for the year ended December 31, 2024, on August 27. The matter regarding this compliance is now closed.

Also on Friday, Check-Cap entered into an Asset Purchase Agreement with Parea LLC, a Pennsylvania limited liability company, to acquire all rights to a contract granting exclusive Ghost Kitchen franchise rights in New Jersey. Under the agreement, Check-Cap will receive 50% of all initial franchise fees and 50% of ongoing royalties paid by New Jersey franchisees. As consideration, Check-Cap issued 1,169,596 ordinary shares to Parea LLC.

These disclosures are based on a press release statement included in the company’s SEC filing.

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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