Tivic Health Systems, Inc., a company specializing in electromedical and electrotherapeutic apparatus, has been notified by the Nasdaq Stock Market LLC of its non-compliance with the exchange’s minimum bid price requirement. This notice, dated June 28, 2024, was triggered after the company’s common stock closing bid price remained below $1.00 per share for 33 consecutive business days.

Current Status and Next Steps
Despite the notice, Tivic Health’s stock will continue to be listed on the Nasdaq Capital Market with no immediate impact on its trading status. The company, which trades under the ticker NASDAQ
, has until December 26, 2024, to comply with the minimum bid price requirement. Compliance can be achieved if the stock’s closing bid price reaches or exceeds $1.00 per share for at least 10 consecutive business days before the deadline.

If Tivic Health does not meet this requirement by December 26, the company may be eligible for an additional 180-day grace period. This extension is contingent on meeting other market value and listing standards, as well as notifying Nasdaq of its intent to address the bid price deficiency.

Based in Fremont, California, and incorporated in Delaware, Tivic Health has indicated that it will closely monitor its stock’s closing bid price and explore various options to regain compliance. However, if the company fails to rectify the situation within the allotted timeframe, including any extension, it risks being delisted from the Nasdaq Capital Market. Tivic Health would then have the right to appeal the decision before a Nasdaq hearings panel.

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Public Offering Announcement
In recent developments, Tivic Health Systems has announced the terms for a public offering aimed at raising approximately $4 million. This offering includes around 4.7 million shares of common stock, accompanied by Series A and Series B warrants for additional shares, each priced at $0.85. The closing of this offering is anticipated around May 13, 2024, subject to standard closing conditions, with Maxim Group LLC (NASDAQ
) acting as the sole placement agent. The proceeds will support Tivic Health’s ongoing product development and business strategies.

Financial Insights and Market Performance
According to InvestingPro, Tivic Health Systems Inc. faces significant challenges, reflected in its market capitalization of just $2.31 million and a 52-week low trading price of $0.37 per share. Over the past year, the stock has experienced a substantial decline of 96.41%.

InvestingPro’s analysis reveals a mixed financial landscape for Tivic Health. Positively, the company holds more cash than debt and its liquid assets exceed short-term obligations, suggesting a degree of financial stability. Analysts also forecast sales growth in the current year, indicating potential for recovery. However, the company is not expected to be profitable this year and is rapidly burning through cash, raising concerns about its long-term sustainability. Additionally, the stock’s high price volatility implies that investors could face significant fluctuations.

For those interested in a more comprehensive evaluation of Tivic Health’s investment potential, InvestingPro offers further insights and data points. By using the exclusive coupon code PRONEWS24, readers can access these resources and save up to 10% off a yearly Pro or a biyearly Pro+ subscription, with 16 additional InvestingPro Tips available for a deeper analysis of Tivic Health Systems Inc.

This article was generated with the support of AI and reviewed by an editor. For more information, see our T&C.

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Source: in.investing.com

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