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Clinical-stage pharmaceutical company Brickell Biotech, Inc. (Nasdaq: BBI) announced that the company has received formal notice from The Nasdaq Stock Market stating that Brickell has regained compliance meeting the minimum bid price requirement for continued listing on the exchange and, accordingly, the scheduled hearing has been canceled and Brickell’s common stock will continue to be listed and traded on Nasdaq.
Brickell will resume their work to transform patient lives by developing innovative and differentiated prescription therapeutics for the treatment of autoimmune, inflammatory, and other debilitating diseases.
Brickell Biotech, Inc. is a pharmaceutical company that is focused on producing innovative and different prescription medicines to improve the health of patients experiencing autoimmune, inflammatory, and other severe diseases.
Bricken’s pipeline includes a number of development-stage candidates and a cutting-edge platform with global potential in autoimmune and inflammatory diseases.
Brickell’s executive management team and board of directors have years of experience in product development and worldwide commercialization, having worked at major pharmaceutical firms and biotechs throughout the world.
The team has developed and/or launched successful products, including several that were first-in-class and/or achieved iconic status, such as Cialis, Taltz, Gemzar, Prozac, Cymbalta, Juvederm and Pluvicto.
Brickell is looking to use its prior knowledge of the pharmaceutical industry to develop, acquire, and commercialize cutting-edge medicines that it believes can help patients with chronic, debilitating diseases who are otherwise unserved.
This is great news for Brickell Biotech and their shareholders. The company’s innovative pipeline of drugs has the potential to change the lives of patients suffering from chronic diseases. With experienced leadership at the helm, Brickell is poised for success in bringing these life-changing treatments to market.
We look forward to seeing Brickell Biotech continue to thrive and bring new treatments to patients who need them.
Understanding Nasdaq Minimum Bid Price Requirement
The Nasdaq Minimum Bid Price Requirement is the minimum price per share that a company’s stock must trade at in order to be listed on the Nasdaq Stock Market. The Nasdaq Minimum Bid Price Requirement is also known as the “Nasdaq Listing Rules.”
To meet the Nasdaq Minimum Bid Price Requirement, a company’s stock must have a closing price of at least $1.00 per share for the previous 30 consecutive business days (or be equal to or exceed $1.00 on the last trading day of that period).
If a company’s stock does not meet the Nasdaq Minimum Bid Price Requirement for 30 consecutive business days, the company will receive a “compliance period” of up to 180 calendar days to regain compliance.
If a company is not able to regain compliance within the compliance period, its shares will be delisted from the Nasdaq Stock Market.
There are a few ways that a company can regain compliance with the Nasdaq Minimum Bid Price Requirement:
- The company’s stock price could increase so that it meets the $1.00 per share minimum for 30 consecutive business days.
- The company may complete a reverse stock split, in which the number of shares outstanding is reduced and the stock price is increased proportionately. However, the reverse split must be at a ratio of not less than 1-for-2 and not greater than 1-for-10.
- The company may enter into a “Rule 144A transaction” or undergo a “self tender offer” in which the company purchases its own shares in the open market.
If a company’s stock is delisted from the Nasdaq Stock Market, it may still be traded on the over-the-counter (OTC) market or in the pink sheets. However, delisted stocks typically trade at lower prices and have less liquidity than stocks that are listed on major exchanges.
Delisted stocks may also have difficulty raising capital, as investors tend to view them as more risky. As a result, companies that are delisted from the Nasdaq Stock Market may find it difficult to continue operating.
Why Nasdaq Minimum Bid Price Requirement is Important
The Nasdaq Minimum Bid Price Requirement is important because it helps to ensure that companies listed on the Nasdaq Stock Market are financially stable and have a certain level of liquidity.
The requirement also helps to protect investors by ensuring that companies listed on the Nasdaq Stock Market meet certain financial standards. The Nasdaq Minimum Bid Price Requirement also helps to keep the Nasdaq Stock Market a reputable and respected exchange.