Sunshine Heart Granted Time To Regain NASDAQ Compliance
Eden Prairie-based Sunshine Heart Inc. has been granted more time to regain compliance with the listing requirements of the NASDAQ stock exchange. On Tuesday, the company disclosed that it had received a letter from the NASDAQ Office of General Counsel on Monday.
The company’s stock will continue to be traded on the exchange while it tries to meet deadlines to regain compliance. Sunshine Heart must ultimately meet two different standards to remain listed on NASDAQ.
The company has until January 31, 2017, for its stock to trade at $1 per share or more for at least ten consecutive trading days. The company also has until March 20, 2017, to meet the exchange’s requirement for the company to have at least $2.5 million in stockholder’s equity on its balance sheet.
A brief statement from Sunshine Heart noted: “The company is diligently working on executing its plan to demonstrate compliance with the continued listing requirements, and will provide a further update when relevant information becomes available. There can be no assurance that the company will be able to evidence compliance with the applicable listing criteria within the period of time granted by the panel.”
The company disclosed in September that it was facing potential delisting, but was requesting a hearing with the NASDAQ hearing panel to make its case for its plan to regain compliance.
Sunshine Heart’s stock has not closed at more than $1 per share since July. On Tuesday, the company’s stock closed at 16 cents per share.
In September the company announced a “strategic realignment” away from its focus on technology for heart failure patients to the Aquadex FlexFlow System which it acquired in August. Aquadex provides treatment to remove salt and water from patients who are suffering from fluid overload and for whom diuretic therapy has not worked.
TCB recently reported that Sunshine Heart received $3.8 million from a “health care dedicated institutional investor” in exchange for convertible preferred stock.