Co-Diagnostics , Inc. (NASDAQ:CODX), a medical device company based in Salt Lake City, Utah, has been notified of non-compliance with Nasdaq's minimum bid price requirement. The company's common stock, currently trading at $0.83, has been trading below the required $1.00 minimum bid price for the last 30 consecutive business days, as per a notice received on Friday. According to InvestingPro data, the stock has declined over 43% in the past six months, though analysis suggests the company is currently undervalued.
The Nasdaq notice, however, does not mean an immediate delisting for Co-Diagnostics' stock, which will continue to trade on the Nasdaq Capital Market under the ticker "CODX". The company has until July 9, 2025, to regain compliance. For this, the bid price of Co-Diagnostics' common stock must close at or above $1.00 for at least ten consecutive business days. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 6.92 and holds more cash than debt on its balance sheet.
Should Co-Diagnostics fail to meet the requirement by the specified date, it may be granted an additional 180 days to regain compliance, provided it meets all other initial listing standards for The Nasdaq Capital Market, except the bid price. This could involve implementing measures such as a reverse stock split.
Co-Diagnostics has expressed its intent to monitor its stock's closing bid price closely and to evaluate all available options to address the deficiency and return to compliance with Nasdaq's Listing Rule 5550(a)(2).
This development comes at a time when regulatory compliance is critical for listed companies to maintain investor confidence and access to capital markets. Co-Diagnostics, known for its work in the surgical and medical instruments sector, is now under pressure to resolve this issue promptly to avoid the consequences of delisting, which could impact its market visibility and liquidity. With a beta of -0.85, the stock typically moves contrary to market trends, offering potential diversification benefits.
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