TEL AVIV – SciSparc Ltd. (NASDAQ:SPRC), a clinical-stage pharmaceutical company, announced today that it has received a notice from the Nasdaq Stock Market indicating non-compliance with the exchange's minimum bid price requirement. The current share price of SciSparc is below the $1.00 threshold set by Nasdaq Listing Rule 5550(a)(2).
The company, which specializes in developing treatments for central nervous system disorders and rare diseases, has been given 180 days, until January 13, 2025, to meet the minimum bid price criterion. To regain compliance, SciSparc's ordinary shares must maintain a closing bid price of at least $1.00 for ten consecutive business days within this period.
During the grace period, SciSparc's shares will continue to trade on the Nasdaq under the ticker symbol "SPRC". The notice does not affect the company's listing immediately, allowing trading to proceed as usual.
If SciSparc fails to meet the requirement after the initial 180 days, it may be eligible for a second 180-day compliance period, provided it meets all other initial listing standards for the Nasdaq Capital Market, except for the minimum bid price. The company would need to submit a written notice of its intent to cure the deficiency during the second compliance period.
SciSparc is known for its cannabinoid-based pharmaceuticals and is currently engaged in drug development programs for conditions such as Tourette Syndrome, Alzheimer's disease, pain, and status epilepticus. The company also has a subsidiary that sells hemp seed oil-based products on Amazon.com (NASDAQ:AMZN).
The press release includes forward-looking statements regarding the company's intentions to regain compliance with Nasdaq's continued listing requirements. However, these statements are subject to risks and uncertainties, and actual results may differ.
The information provided herein is based on a press release statement from SciSparc Ltd. and does not include any speculative content or analysis. Investors are advised to consider the inherent risks and uncertainties that may affect the company's future performance.
InvestingPro Insights
SciSparc Ltd. (NASDAQ:SPRC) faces challenges as it navigates Nasdaq's minimum bid price requirement, and the latest metrics from InvestingPro provide a deeper look into the company's financial health and market performance.
With a market capitalization of just $2.54 million, SciSparc's size is relatively small compared to many of its peers in the pharmaceutical industry. The company's revenue for the last twelve months as of Q4 2023 stood at $2.88 million, showcasing a substantial growth of 113.73% compared to the previous period. However, this growth is contrasted by a quarterly revenue decline of 32.67% in Q1 2023.
InvestingPro Tips highlight that while SciSparc holds more cash than debt on its balance sheet, which is a positive sign for its liquidity, the company is quickly burning through its cash reserves. Furthermore, analysts anticipate a sales decline in the current year, which could impact the company's efforts to meet Nasdaq's listing requirements. Despite the challenges, SciSparc's stock has seen a significant return over the last week, with a price total return of 24.36%.
For investors interested in a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/SPRC. These tips provide valuable insights into SciSparc's financial position and market performance, which can be crucial for making informed investment decisions. To access these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Currently, there are 11 additional InvestingPro Tips listed for SciSparc that could offer further guidance to shareholders and potential investors.
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