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WALTHAM, MA - Minerva Neurosciences (NASDAQ:NERV), Inc., a pharmaceutical company with a market capitalization of $11.75 million currently trading at $1.70 per share, has successfully regained compliance with Nasdaq’s Net Income Rule, as confirmed by the Nasdaq Hearings Panel. The pharmaceutical company, which specializes in the development of treatments for central nervous system disorders, had previously been at risk of delisting due to non-compliance with Nasdaq’s minimum net income and equity requirements. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 7.85, indicating robust short-term financial stability.
On Monday, the company announced that it had met the requisite net income threshold of $500,000 from continuing operations, thereby satisfying Nasdaq Listing Rule 5550(b)(3). This follows a period of uncertainty that began on April 10, 2024, when Minerva was notified of its failure to maintain the minimum Market Value of Listed Securities of $35 million required for continued listing on The Nasdaq Capital Market. InvestingPro analysis reveals the company has been profitable over the last twelve months, with a P/E ratio of 8.84, though analysts anticipate challenges ahead with projected negative earnings for the coming year.
The company underwent a hearing on December 10, 2024, where it was granted an extension until March 31, 2025, to comply with several listing standards, including the Equity Rule. However, Minerva’s Annual Report on Form 10-K for the year ended December 31, 2024, revealed compliance with the Net Income Rule, precluding the need to meet the previously unmet Equity Rule.
As a result of this turnaround, Minerva will remain listed on Nasdaq but will be subject to a one-year monitoring period ending March 17, 2026. During this time, any failure to maintain compliance with Nasdaq’s listing standards will lead to a Delist Determination Letter and the opportunity for a new hearing. The company is not allowed to submit a plan of compliance for any deficiencies that may arise during this monitoring period. With an overall Financial Health score of 2.04 (rated as ’FAIR’ by InvestingPro), investors seeking deeper insights into the company’s financial stability can access additional ProTips and comprehensive analysis through the InvestingPro platform.
The company’s Chief Financial Officer, Frederick Ahlholm, signed off on the report filed on Wednesday, March 19, 2025. Minerva Neurosciences cautions that there is no guarantee of maintaining compliance with Nasdaq’s listing standards in the future, nor assurance of continued listing on the exchange. The information provided is based on the latest SEC filing by Minerva Neurosciences.
In other recent news, Minerva Neurosciences, Inc. has secured a conditional extension to remain listed on the Nasdaq Capital Market. This extension comes after the company faced compliance challenges with Nasdaq’s listing standards. The Nasdaq Hearings Panel granted Minerva’s request for continued listing, contingent upon the company meeting specific requirements by March 31, 2025. Minerva must disclose transactions that will bring it into compliance with the Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders’ equity of $2.5 million. Additionally, the company needs to submit income projections for the next 12 months and demonstrate compliance with all criteria for continued listing. This decision follows a previous warning in April 2024, when Minerva’s Market Value of Listed Securities fell below the required minimum for 31 consecutive business days. Minerva is actively preparing to meet these requirements, although it acknowledges that long-term compliance is not guaranteed. The company’s continued Nasdaq listing is crucial for maintaining access to capital markets and supporting its clinical developments.
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