Tivic Health (Nasdaq:TIVC) CEO Jennifer Ernst issued a letter to investors updating them on the current situation at the bioelectronic medicine developer.
Ernst’s letter included the announcement that the company took several measures to fortify its position. That includes a reduction in force and internal restructuring. The company did not disclose further details about the reduction or restructuring.
San Francisco-based Tivic filed an SEC Form 8-K pertaining to a notice of delisting from the Nasdaq market. The company received notice in January that its closing price fell below $1 for 30 consecutive trading days. It received a six-month grace period to regain compliance.
Tivic recommended a reverse stock split to remedy the issue, but failed to pass the measure at its annual meeting of stockholders in June. The company set a special stockholder meeting for Aug. 11 and urged investors to vote in favor of a reverse split.
Ernst relayed her confidence that the company resolves the matter by the middle of August. The company anticipated the receipt of the mandatory formal notice and already took steps to resolve it. Tivic requested to appeal the determination, which was granted and scheduled for Sept. 21. While the appeal remains pending, the company continues to trade on the Nasdaq market.
“We are confident that, with the contractually obligated votes, we will secure sufficient support at the special stockholder meeting to approve the reverse stock split measure,” Ernst wrote. “This would then allow us to implement a reverse stock split and regain compliance with the Nasdaq rules shortly after the stockholder meeting. Although no guarantees can be offered, this process is well underway and will allow us to regain compliance well in advance of the September hearing date.”
Positive news on the IP front for Tivic Health
Despite the company’s struggle with Nasdaq compliance, it reported positive portfolio news today. The U.S. Patent and Trademark Office issued its sixth patent for Tivic’s bioelectronic platform. This patent expands the company’s IP to include the proprietary contacts, conductive circuitry design and algorithms to optimize therapy delivery.
Tivic currently has 17 additional patents pending in the U.S. and abroad. The new patent — US 11642523 — addresses the core technology used to deliver bioelectronic treatment to the user. Tivic’s first commercial product, ClearUP, holds FDA approval for over-the-counter treatment of symptoms of inflammation. That includes sinus pain and congestion. In 2021, the FDA expanded the indication for use of ClearUp to include congestion from allergies, the flu and the common cold.
“This patent issuance continues to build the strength of our intellectual property portfolio,” said Ernst. “Bioelectronic medicine is an important treatment methodology for the future and Tivic is delivering innovative solutions to meet consumer needs.”
MassDevice reached out to Tivic Health for more details relating to its workforce reduction and restructuring. This article may be updated.