Dermata Therapeutics receives extension from Nasdaq panel to meet minimum bid price

Dermata Therapeutics , Inc. (NASDAQ:DRMA), whose stock has declined over 70% in the past year and currently trades at $0.69, announced Monday that it has been granted an extension by a Nasdaq panel to regain compliance with the exchange’s minimum bid price requirement. According to InvestingPro data, the company’s market capitalization stands at just $4.24 million. According to a statement based on a recent SEC filing, the company now has until August 14, 2025, to demonstrate compliance with the Nasdaq Capital Market’s rule that requires listed securities to maintain a minimum bid price of $1.00 per share.

The extension follows a notice Dermata received from Nasdaq on May 14, 2025, indicating that the company’s common stock had closed below the $1.00 per share threshold for 30 consecutive business days, putting it out of compliance with Nasdaq Listing Rule 5550(a)(2). The company had previously implemented a reverse stock split within the prior year, which led Nasdaq staff to state that Dermata’s securities were subject to delisting and would be suspended on May 23, 2025. Dermata requested a hearing before a Nasdaq panel, which stayed any suspension or delisting action pending the hearing’s outcome.

On July 2, 2025, the panel granted Dermata an exception, giving the company until mid-August to meet the minimum bid price rule. Under the terms of the exception, Dermata is required to promptly notify the panel of any significant events, including those that may affect its ability to comply with the extension.

Dermata stated it is pursuing measures to regain compliance, including seeking shareholder approval for a reverse stock split at its annual stockholders meeting scheduled for July 15, 2025. The company noted there is no assurance it will be able to regain compliance or maintain its listing on the Nasdaq Capital Market. If Dermata does not meet the requirements by the deadline, or fails to satisfy other Nasdaq listing standards, its securities may be subject to delisting. InvestingPro subscribers can access 11 additional key insights about Dermata’s financial health and future prospects, along with detailed valuation metrics and analyst forecasts.

This information is based on a statement from Dermata Therapeutics, Inc. contained in a recent SEC filing.

In other recent news, Dermata Therapeutics has reported significant progress in its clinical trials for XYNGARI™, a treatment for moderate-to-severe acne. The company announced that its Phase 3 STAR-1 trial demonstrated statistically significant efficacy, with 11.9% of participants achieving a "clear" or "almost clear" score compared to 6.2% in the placebo group. This positive outcome has set the stage for a second Phase 3 trial, STAR-2, expected to commence in the fourth quarter of 2025. Additionally, the company has begun drug production for this upcoming trial, with topline results anticipated in the first half of 2027.

In financial updates, Dermata’s first-quarter results revealed operating expenses below expectations and a GAAP loss per share in line with projections. The company holds $9.7 million in cash and equivalents, with an average quarterly cash burn of approximately $2.6 million, allowing operations to continue into the first quarter of 2026. However, a potential capital raise later in 2025 may be necessary to fund ongoing initiatives. Following these developments, Maxim Group adjusted its price target for Dermata to $3.00, down from $6.00, while maintaining a Buy rating. Dermata’s strategic progression in clinical trials and financial management continues to be closely monitored by investors and analysts.

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