Microbot Medical (NASDAQ:) Inc. has been notified by Nasdaq that its stock does not meet the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
The medical device company’s share price has been under $1.00 for 30 consecutive business days, from August 26, 2024, to October 7, 2024, which is against Nasdaq Listing Rule 5550(a)(2).
The company, which specializes in surgical and medical instruments and apparatus, has until April 7, 2025, to regain compliance with the Minimum Bid Price Requirement. Compliance can be achieved if the closing bid price of the company’s common stock reaches at least $1.00 for ten consecutive business days before the compliance deadline.
If Microbot Medical fails to meet the requirement by April 7, 2025, it may be granted an additional 180 days to regain compliance, provided it meets certain conditions, including the market value of publicly held shares and other initial listing standards, except for the Minimum Bid Price Requirement.
In the event of non-compliance after the extended period, Nasdaq may delist the company’s securities. Microbot Medical would then have the right to appeal the decision. However, there is no guarantee that the company will regain compliance or that an appeal would be successful.
The company has also announced its intention to hold its annual meeting of stockholders on or about December 17, 2024. Due to the change in the meeting date by more than 30 days from the previous year, the deadline for stockholder proposals for the 2024 Annual Meeting is set for October 25, 2024. Proposals must comply with SEC rules and the company’s bylaws.
This news is based on the latest SEC filing by Microbot Medical Inc. and reflects the company’s current regulatory and compliance status on the Nasdaq Capital Market.
In other recent news, Microbot Medical has made significant strides in its ACCESS-PVI clinical trial for the LIBERTY® Endovascular Robotic Surgical System, with accelerated patient enrollment and 80% of participants completing the follow-up period.
The company anticipates a timely completion of the study and a subsequent FDA submission by the end of 2024. Microbot Medical has also received final Investigational Device Exemption (IDE) approval from the FDA, having completed all required biocompatibility tests.
In collaboration with Corewell Health, Microbot Medical has launched Phase 2 development of its LIBERTY system for remote telesurgery, following a successful Phase 1.
Concurrently, the company has expanded its pivotal human clinical trial for the LIBERTY system to include Baptist Hospital of Miami, after receiving FDA approval. The company is also performing customary bench testing, the results of which will be included in the 510(k) submission.
Financially, Microbot Medical has amended its existing At the Market Offering Agreement with H.C. Wainwright & Co., LLC, allowing it to offer and sell shares of its common stock with an aggregate offering price of up to $4,819,905.
The company also secured approximately $2.35 million in gross proceeds from a stock sale and investment options, with H.C. Wainwright & Co. serving as the exclusive placement agent. H.C. Wainwright has adjusted its outlook on Microbot Medical, reducing the price target to $7.00 while maintaining a Buy rating. These are recent developments for Microbot Medical.
InvestingPro Insights
Recent InvestingPro data sheds light on Microbot Medical’s financial situation, providing context to its Nasdaq listing challenges. The company’s market capitalization stands at a modest $16.17 million, reflecting its small-cap status. Despite the recent notification from Nasdaq, MBOT has shown a 1-week price total return of 8.18%, indicating some short-term positive momentum.
However, the company faces significant financial hurdles. InvestingPro Tips reveal that Microbot Medical is quickly burning through cash and is not profitable over the last twelve months. This is further evidenced by the negative operating income of -$9.51 million in the last twelve months as of Q2 2024. These factors may contribute to the stock’s volatility and its struggle to maintain the minimum bid price required by Nasdaq.
On a positive note, InvestingPro Tips indicate that the company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial positioning could provide some flexibility as Microbot Medical works to address its listing compliance issues.
Investors seeking a more comprehensive analysis can access 9 additional InvestingPro Tips for MBOT, offering deeper insights into the company’s financial health and market position.
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