The Carlsbad, Calif.-based company learned that it is not complying with the NYSE continued listing standard that requires companies to maintain an average closing share price of at least $1 over a consecutive 30-trading-day period.
Currently, Ra Medical Systems shares are trading down -4.7% at 45¢ per share in mid-morning trading, standing 55¢ beneath the listing requirement. The company’s common stock must have a closing price of at least $1 per share and an average closing price of at least $1 per share over a 30-trading-day period in order to regain compliance, otherwise, it faces suspension and delisting.
Ra Medical now has a six-month period to regain compliance with the average closing share price requirement. During the COVID-19 pandemic, the NYSE is tolling compliance periods until at least June 30, and if the tolling period is not extended, Ra Medical must regain compliance by Dec. 31, according to a news release.
In March, Ra Medical said the NYSE accepted its business plan to regain compliance with the market’s continued listing standards after notifying the company in December 2019 that it was non-compliant. In that case, Ra Medical’s average market capitalization over a previous 30-day trading period came in at less than the $50 million baseline in the listing standard.
Earlier this week, Ra Medical announced that it priced a public offering of its common stock with gross proceeds expected to reach approximately $10 million.
The company develops the Dabra minimally invasive excimer laser system. The Dabra system is designed to destroy arteriosclerotic blockages through the use of radiation ablation. The system won FDA 510(k) clearance in May 2017 for the treatment of occlusive peripheral vascular disease after the artherectomy catheter system received CE Mark approval in October 2016.