Minerva Neurosciences, Inc. (NASDAQ:NERV), a clinical-stage biopharmaceutical company with a current market capitalization of $15.21 million, has received a conditional extension to remain listed on the Nasdaq Capital Market.
This development follows the company's recent compliance challenges with Nasdaq's listing standards. According to InvestingPro data, the stock has experienced significant pressure, declining over 70% in the past year and currently trading near its 52-week low of $2.06.
On January 10, 2025, Minerva announced that it received a notice from The Nasdaq Stock Market LLC indicating that the Nasdaq Hearings Panel had granted the company's request for continued listing. This decision is contingent on two requirements: firstly, by March 31, 2025, Minerva must publicly disclose transactions that will bring the company into compliance with the Nasdaq Listing Rule 5550(b)(1), which mandates a minimum stockholders’ equity of $2.5 million.
The company must also provide an indication of its equity following these transactions. Secondly, by the same date, Minerva is required to submit income projections for the subsequent 12 months and demonstrate compliance with all criteria for continued listing on The Nasdaq Capital Market.
The notice comes in the wake of a previous warning received on April 10, 2024, when Nasdaq alerted Minerva that its Market Value of Listed Securities had fallen below the required minimum of $35 million for 31 consecutive business days, contravening the MVLS Rule.
Minerva is actively working to prepare and file the necessary documents to regain compliance with Nasdaq's listing standards by the March 31 deadline. Despite these efforts, the company acknowledges that there is no guarantee it will be able to meet the listing requirements or maintain its listing on Nasdaq in the long term.
The company's securities are registered under the 1934 Act with the SEC, and this report is based on a statement released in an 8-K filing. The continued listing on Nasdaq is critical for Minerva as it seeks to maintain its access to capital markets and support its ongoing clinical developments in the pharmaceutical preparations sector.
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