Helius Medical faces Nasdaq delisting over bid price

NEWTOWN, PA – Helius Medical (TASE:PMCN) Technologies, Inc. (NASDAQ:HSDT), a medical technology company specializing in neuromodulation and headquartered in Newtown, Pennsylvania, is currently facing delisting from The Nasdaq Capital Market. The company, currently trading at $0.54 with a market capitalization of just $2.04 million, received a notification of non-compliance with Nasdaq’s Minimum Bid Price Requirement because its stock price has been below $1.00 for 30 consecutive trading days. According to InvestingPro data, the stock has fallen over 90% in the past year, though analysis suggests the company may be undervalued at current levels.

The initial notice of the bid price deficiency was received on August 9, 2024. Helius was given 180 days, until February 5, 2025, to regain compliance. However, on February 7, 2025, Nasdaq informed Helius that it had not met the requirement, and its stock was subject to delisting. Helius plans to appeal this decision by requesting a hearing before the Nasdaq Hearings Panel, which will delay any further delisting actions until the hearing process concludes. During this time, the company’s stock will continue to trade on the Nasdaq. InvestingPro analysis reveals the company maintains a strong liquidity position with a current ratio of 3.61, though it faces significant operational challenges with rapidly declining cash reserves.

Amidst these challenges, Helius Medical Technologies has engaged in efforts to strengthen its financial position. On January 21, 2025, the company entered into agreements with certain warrant holders to exercise their warrants at a reduced price, in exchange for issuing new warrants. This transaction is contingent on stockholder approval, which Helius aims to secure at its upcoming Annual Meeting scheduled for April 21, 2025. The record date for the meeting is set for March 12, 2025.

The company has also announced a deadline of February 17, 2025, for stockholders to submit proposals or director nominations to be considered at the Annual Meeting. These submissions must comply with SEC rules and the company’s bylaws.

While Helius has expressed its intent to present a plan to regain compliance with Nasdaq’s listing requirements, there is no guarantee that it will be successful in maintaining its listing. The information disclosed is based on the company’s latest SEC filing.

In other recent news, Helius Medical Technologies has been making significant strides in the field of neurotech. The company’s Portable Neuromodulation Stimulator (PoNS) therapy has demonstrated promising results in improving gait deficits in individuals with Multiple Sclerosis (MS), according to the PoNS Therapeutic Experience Program study. The therapy, which combines in-clinic and at-home physical rehabilitation using the PoNS device, showed a mean improvement in the Dynamic Gait Index at week 14.

In addition, Helius has exceeded its initial enrollment target for its stroke registrational program, aiming to demonstrate the safety and effectiveness of the PoNS for improving balance and gait deficits in stroke survivors. The company is on track for FDA submission for stroke authorization in the second quarter of 2025.

Helius also secured Medicare payment rates for the PoNS device, a significant milestone that solidifies the reimbursement pathway for the device, potentially expanding access for Medicare beneficiaries. However, the company has expressed concerns over the pricing determinations by the Centers for Medicare & Medicaid Services, arguing that the current pricing does not reflect the technology’s value. These are the recent developments in the company’s quest to improve the lives of those with neurological diseases.

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