As of the last check, NLS Pharmaceutics AG (NASDAQ: NLSP) stock was rising 12.88% to trade at $0.568 in after-hours trading. After receiving a letter regarding their NASDAQ listing, NLSP stock made losses of -23.76% before closing Monday at $0.50.
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NLSP has received what letter?
The Nasdaq Stock Market LLC (“Nasdaq”) informed NLS Pharmaceutics (NLSP) last Friday that it received a determination letter (the “Letter”) from the Listing Qualifications Department on September 29, 2022.
- NLSP was notified in the letter that, unless the Company timely requested a hearing before a Nasdaq Hearings Panel (the “Panel”), the Company’s securities would be delisted from the Nasdaq Capital Market.
- As outlined in Nasdaq Listing Rule, NLSP failed to maintain compliance with the minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market.
- As a result, NLS Pharmaceutics intends to request a hearing from the Panel within the deadline.
- As a result of the hearing request, any suspension or delisting action will be held until the hearing has concluded and any additional extension period granted by the Panel will expire.
- Accordingly, the Panel has the discretion to extend the Company’s listing until March 28, 2023, in accordance with the Nasdaq Listing Rules.
A plan will be presented at the hearing by NLSP to achieve compliance with all Nasdaq listing requirements and a request will be made to the Panel for additional time to achieve compliance. There is, however, no assurance that the Panel will grant the Company’s extension request or that the Company will ultimately regain compliance with all applicable listing requirements.
NLSP’s Equity Efforts:
Earlier this month, NLS Pharmaceutics signed definitive agreements with investors, as well as announced the appointment of George Apostol as Chief Medical Officer and Ronald Hafner as Chairman of the Board. During the private placement, 5,194,802 common shares of the company were purchased and sold, along with warrants to purchase up to 2,597,401 common shares (the “Securities” together). The gross proceeds, before the deduction of placement agent commissions and other estimated offering expenses, were approximately $4 million.
What will NLSP do to close the deal?
As part of the offering, 2,516,429 common shares will be automatically converted from the existing short-term notes issued in August 2022 by NLS Pharmaceutics (NLSP) with an aggregate principal balance of $1.53 million. With the warrants, holders will receive an option to purchase up to 1,258,215 common shares of NLSP with an exercise price of $0.70. The warrants will be exercisable six months from the date of issuance and will expire five years later.
