BROOMFIELD, CO – Aclarion, Inc., a medical laboratory services provider, is confronting the risk of being delisted from the Nasdaq Stock Market due to non-compliance with the exchange's listing requirements, according to a recent 8-K filing with the Securities and Exchange Commission (SEC).
The company, which trades under the ticker ACON, received notice from Nasdaq on Monday that it does not meet the minimum bid price requirement of $1.00 per share. This follows a previous warning in April 2024 when the company's stock price fell below the threshold for 30 consecutive business days ending April 5, 2024.
Additionally, Aclarion was notified on August 22, 2024, of its failure to comply with the minimum stockholders' equity rule of $2.5 million. As of June 30, 2024, the company's equity stood at $1,642,177.
In response to the equity shortfall, Aclarion appealed to a Nasdaq hearing panel, with the hearing scheduled for October 10, 2024. The company presented a plan to regain compliance, which included a stockholder-approved proposal to effectuate a reverse stock split, if necessary, within a range of one-for-five to one-for-fifty, at the board's discretion.
The October 10 hearing also addressed the bid price issue. Pending the hearing's outcome and any granted extension, the trading of Aclarion's common stock will continue on Nasdaq.
Aclarion's board was granted authority by stockholders at a special meeting on September 23, 2024, to implement a reverse stock split within one year to help meet the bid price requirement. The company has expressed its intention to take all reasonable measures to regain compliance and maintain its Nasdaq listing.
This development comes as Aclarion, formerly known as Nocimed, Inc., strives to navigate the stringent listing standards of the Nasdaq Capital Market. The information is based on the company's latest SEC filing.
In other recent news, Aclarion, Inc. has announced a series of developments. The healthcare technology firm unveiled findings from a study using its Nociscan platform to investigate the role of MRI-detected spinal abnormalities in chronic low back pain. The study suggests that the presence of propionic acid might help determine why some patients respond to treatment while others do not.
Aclarion has also initiated a $10 million at-the-market offering, entering into an agreement with Ascendiant Capital Markets. Furthermore, the company has received approval from its shareholders for a potential reverse stock split within a year. Ascendiant Capital has initiated coverage on Aclarion's stock, rating it a 'Buy'.
Aclarion has secured its 23rd U.S. patent, relating to techniques that enhance the quality of spectral data from Magnetic Resonance Spectroscopy exams.
Additionally, three of the four largest private insurance payers in the UK have agreed to cover Aclarion's Nociscan platform. In partnership with ATEC, a major spine implant company, Aclarion aims to leverage pre-surgical data for improved patient outcomes.
The company has also raised $290,000 through a common stock sale and exchanged approximately $930,000 of outstanding debt for equity. These are among the recent developments for the company.
InvestingPro Insights
Recent InvestingPro data underscores Aclarion's challenging financial position. The company's market capitalization stands at a mere $1.65 million, reflecting its precarious situation. With a negative P/E ratio of -0.27 over the last twelve months as of Q2 2024, Aclarion is struggling to generate profits. This aligns with an InvestingPro Tip indicating that the company is not profitable over the last twelve months.
The company's revenue for the same period was just $0.05 million, with a concerning revenue growth decline of -35.23%. This negative trend is further emphasized by another InvestingPro Tip, which notes that Aclarion's net income is expected to drop this year.
These metrics provide context to Aclarion's delisting risk and its efforts to regain compliance with Nasdaq requirements. The company's financial struggles are evident, supporting the need for drastic measures such as the proposed reverse stock split.
For investors seeking a deeper understanding of Aclarion's situation, InvestingPro offers 11 additional tips that could provide valuable insights into the company's prospects and challenges.
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