Cara Therapeutics, Inc. recently disclosed in a Form 8-K filing that it has received a notification from the Listing Qualifications Department of The Nasdaq Stock Market stating that the company is not in compliance with the minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market.
The notification, received on November 19, 2024, highlighted that Cara Therapeutics reported stockholders’ equity of $707,000 in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which falls below the required minimum of $2.5 million. Additionally, the company did not meet the alternative compliance standards related to market value of listed securities or net income from continuing operations.
Cara Therapeutics is currently exploring various strategies to regain compliance and intends to submit a plan within the specified timeline. However, there is no assurance that the plan will be accepted or that compliance will be achieved. Failure to submit a plan, non-acceptance of the plan, or inability to regain compliance within the granted extension period could lead to delisting of the company’s securities.
It is important to note that this notice is separate from the previously disclosed deficiency letter received by Cara Therapeutics on February 1, 2024, in relation to the Minimum Bid Price Requirement. The company has until January 27, 2025, to regain compliance with this requirement, failing which could also result in delisting.
Cara Therapeutics is closely monitoring its bid price and considering options to resolve the deficiencies. These options may include a reverse stock split if necessary. The company will continue actively reviewing its compliance status and is prepared to appeal any delisting determination if necessary.
Investors and stakeholders are advised to closely follow the company’s progress in addressing these compliance issues as it navigates the requirements for continued listing on The Nasdaq Capital Market.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Readers are urged to consider these factors in evaluating any forward-looking statements.
The Form 8-K filing also included the required signatures from Ryan Maynard, the Chief Financial Officer of Cara Therapeutics, dated November 22, 2024.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cara Therapeutics’s 8K filing here.
About Cara Therapeutics
Cara Therapeutics, Inc, a development-stage biopharmaceutical company, focuses on developing and commercializing therapeutics treatment of chronic pruritus in the United States. The company’s lead product is KORSUVA (difelikefalin) injection for the treatment of moderate-to-severe pruritus associated with chronic kidney disease (CKD) in adults undergoing hemodialysis.
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