PROVIDENCE - Ocean Biomedical, Inc. (NASDAQ: OCEA), a biopharmaceutical company, has been notified by The Nasdaq Stock Market LLC of non-compliance with its listing rules due to a delay in filing its annual report. The company, which is based in Providence, Rhode Island, was expected to file its Annual Report on Form 10-K for the period ending December 31, 2023, but has yet to do so.
The notice, received on April 18, 2024, specifies that Ocean Biomedical has not adhered to Nasdaq Listing Rule 5250(c)(1), which mandates timely filing of all required periodic reports with the Securities and Exchange Commission (SEC). Despite this, the company's stock will continue to trade on Nasdaq without immediate repercussions. However, the company acknowledges that continued delays in filing the Form 10-K may impact its stock listing and trading in the future.
Nasdaq has given Ocean Biomedical a deadline of June 14, 2024, to submit a plan to regain compliance regarding the filing requirement. Furthermore, the company must file the overdue Form 10-K by October 14, 2024. Ocean Biomedical has expressed its intention to file the necessary documents as soon as possible.
The company specializes in the acceleration of development and commercialization of medical discoveries from research universities and medical centers. They are currently developing five discoveries that hold promise for treating lung and brain cancers, pulmonary fibrosis, and the prevention and treatment of malaria.
Ocean Biomedical's press release included forward-looking statements that involve estimates, forecasts, and expectations about future events. These statements are not guarantees of future performance and are subject to various risks and uncertainties. The company has clarified that any discoveries it has announced are based on laboratory and animal studies, and there is no assurance that these will prove safe or effective in humans without further clinical trials and FDA approval.
InvestingPro Insights
As Ocean Biomedical, Inc. (NASDAQ: OCEA) faces challenges with Nasdaq compliance, investors are taking a keen interest in the company's financial health and stock performance. Recent data from InvestingPro provides a snapshot of the company's market standing and potential investment risks.
The company's market capitalization currently stands at a modest $51.28 million, reflecting investor valuation of the firm's worth. Meanwhile, the stock's price-to-earnings (P/E) ratio is deeply negative at -0.57, indicating that investors are not expecting earnings to cover the stock price in the near future. This is further reinforced by the company's basic and diluted earnings per share (EPS), both at a concerning -5.07 USD for the last twelve months as of Q3 2023.
InvestingPro Tips highlight several critical aspects for potential and current investors. Firstly, the Relative Strength Index (RSI) suggests that Ocean Biomedical's stock is in oversold territory, which could imply a potential rebound or represent a lack of investor confidence. Secondly, the stock has experienced high price volatility, which may attract traders looking for short-term gains but could be a red flag for those seeking stable investments. Lastly, the company has suffered from weak gross profit margins, and analysts are not optimistic about its profitability for the year.
Investors should note that Ocean Biomedical has not been profitable over the last twelve months and does not pay a dividend to shareholders. With short-term obligations exceeding liquid assets, the financial stability of the company is under scrutiny. The stock's price has seen a significant fall over the last year, with a 1 Year Price Total Return of -77.91%, although it has had a strong return over the last three months of 157.3%. These metrics suggest a tumultuous investment landscape for Ocean Biomedical.
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