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SAN MATEO, CA - Talphera, Inc., a pharmaceutical company with a market capitalization of $11.86 million, has been notified by the Nasdaq Stock Market of non-compliance with the exchange's minimum bid price requirement, according to a recent SEC filing. The notice, received on Thursday, December 6, 2024, indicates that Talphera's common stock, currently trading at $0.70, did not meet the minimum $1.00 per share bid price over a period of 30 consecutive business days as required by Nasdaq Listing Rule 5450(a)(1).
Despite the warning, the company's stock continues to be listed on The Nasdaq Global Market. According to InvestingPro data, Talphera's stock has declined about 26% over the past six months, trading well below its 52-week high of $1.61. Talphera has been granted 180 calendar days, or until June 4, 2025, to address the bid price deficiency. To regain compliance, the closing bid price of Talphera's common stock must meet or exceed $1.00 per share for at least ten consecutive business days during this period.
If Talphera fails to meet the requirement within the allotted time frame, it may be granted an additional 180 days to comply, provided it meets all other initial listing standards for The Nasdaq Capital Market, except for the minimum bid price. While analyst price targets range from $3 to $6, suggesting significant upside potential, InvestingPro analysis reveals the company is quickly burning through cash and maintains weak profit margins. The company has stated its intention to actively monitor its stock's closing bid price and to consider options to meet Nasdaq's standards, which may include a reverse stock split if necessary.
In other recent news, Talphera, Inc. received a notice from the Nasdaq Stock Market due to an equity shortfall, indicating it no longer meets the minimum stockholders' equity requirement for continued listing. The pharmaceutical company's stockholders' equity was reported at $9,641,000, falling short of the Nasdaq's $10 million threshold. Analysts at InvestingPro reported that the company has been quickly burning through cash, with an EBITDA of -$16.47 million in the last twelve months.
In response to the notice, Talphera must submit a compliance plan by early next year to address the shortfall. If accepted by Nasdaq, the company could be granted up to 180 days to demonstrate compliance. However, if Nasdaq rejects the plan, Talphera could face delisting.
In addition, Talphera has extended its securities purchase agreement deadline with Nantahala Management, LLC, according to an SEC filing. The amendment allows the company until mid-2025 to meet certain conditions. If Talphera successfully carries out equity financing before this second closing, the obligation for the purchasers to buy additional shares of common stock or pre-funded warrants will be waived.
Other recent developments include the initiation of the NEPHRO CRRT study, a key trial for the anticoagulant Nafamostat, across 14 U.S. clinical sites. The company has also obtained shareholder approval for amendments to its executive compensation plans.
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