S&P 500 slips as weaker services data stoke fresh economic concerns
The Oncology Institute, Inc., a healthcare provider specializing in cancer care with annual revenue of $378.93 million, is at risk of being delisted from The Nasdaq Stock Market LLC due to non-compliance with the exchange's minimum bid price requirement.
According to InvestingPro data, the company's stock has declined nearly 90% year-to-date, currently trading at $0.21 with a market capitalization of just $15.64 million.
The company received a notification from Nasdaq on June 20, 2024, stating that its common stock had fallen below the $1.00 minimum bid price per share, violating Nasdaq Listing Rule 5550(a)(2).
The initial 180-day grace period to regain compliance ended on December 17, 2024, without the company's stock meeting the minimum bid price. However, on Thursday, Nasdaq granted the company an additional 180-day period, until June 16, 2025, to address the issue.
The Oncology Institute has expressed its intention to cure the deficiency during this period and is considering a reverse stock split among other options to regain compliance.
The company's common stock and redeemable warrants remain listed under the symbols TOI and TOIIW, respectively, on The Nasdaq Capital Market. The additional compliance period is based on the company's fulfillment of all other listing requirements, except for the minimum bid price. InvestingPro analysis reveals concerning metrics, including significant debt burden and rapid cash burn, with 10+ additional key insights available to subscribers.
The Oncology Institute has stated that there is no immediate impact on the listing or trading of its common stock, and they are fully committed to regaining compliance with Nasdaq's requirements. If the company fails to meet the minimum bid price by the end of the second grace period, it may face delisting. In such a scenario, the company would have the right to appeal before the Nasdaq Hearings Panel.
This news is based on a recent SEC filing and contains forward-looking statements regarding the company's plans to rectify the compliance issue. The Oncology Institute cautions that these statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially.
For a deeper understanding of TOI's financial health and future prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 US stocks with expert analysis and actionable insights.
In other recent news, The Oncology Institute (TOI) has reported a significant increase in its Q3 2024 revenue, marking a 21.8% growth compared to the same period last year. This surge was primarily driven by an 80% increase in oral drug revenue from the company's California pharmacy. TOI has also achieved a quarterly cash surplus for the first time this year, with cash and cash equivalents, including marketable securities, rising by $1 million from the previous quarter.
In addition, TOI has signed three new capitation contracts, contributing to an annualized revenue of over $50 million. The company has also achieved certification for Radiopharmaceutical Therapy in California, which is expected to make a significant contribution to the 2025 EBITDA. On the flip side, TOI reported a net loss of $16.1 million for Q3, although this was an improvement over the previous year.
According to recent developments, TOI is focused on operational excellence and strategic execution to strengthen financial performance. The company completed a review of strategic alternatives and decided to continue focusing on internal growth due to insufficient external interest.
Analysts from various firms have noted TOI's strategic growth initiatives, cost management efforts, and the potential impact of new capitation contracts and Radiopharmaceutical Therapy on future profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.