Surgalign (Nasdaq:SRGA) announced today that it received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market.
The letter notified the company that it no longer remains in compliance with the $10 million minimum stockholders’ equity requirement for continued listing. This falls under Nasdaq Listing Rule 5450(b)(1)(A). The letter further indicated that Surgalign failed to meet alternative standards for continued listing.
Deerfield, Illinois-based Surgalign said the letter has no immediate impact on its listing or trading of its common stock. Under Nasdaq ruels, the company has 45 calendar days to submit a plan to regain compliance. This may include an application to transfer its common stock listing to the Nasdaq Capital Market. If Nasdaq accepts its plan — for which there is no assurance — it may be granted up to 180 calendar days from the date of notification to provide compliance.
Should Nasdaq deem Surgalign’s plan unacceptable, the company may appeal the determination to a Nasdaq hearings panel. Surgalign plans to submit a plan to regain compliance to Nasdaq on or before May 25, 2023.
The spine surgery technology developer recently posted a revenue decline and significant losses for the fourth quarter of 2022. Surgalign attributed its revenue dip to market and economic conditions in the U.S. and abroad. The company also enacted a restructuring plan that included layoffs announced in November. Read here about all the latest layoff news around the medtech industry.
