Citius Pharmaceuticals Inc . (NASDAQ: NASDAQ:CTXR) has been granted an extension until September 9, 2024, to meet the Nasdaq Capital Market's minimum bid price requirement, the company disclosed Monday. This extension provides the pharmaceutical company with additional time to boost its common stock price to at least $1.00 per share, which is necessary to maintain its listing on the Nasdaq.
The extension follows the Nasdaq Listing Rule 5550(a)(2), commonly known as the Bid Price Rule, which mandates that a company's stock must maintain a minimum bid price of $1.00 per share. Citius Pharmaceuticals will need to see its stock price close at or above this threshold for a minimum of ten consecutive business days before the deadline to achieve compliance.
Should Citius Pharmaceuticals' common stock reach the $1.00 per share mark within the granted period and maintain it for the required timeframe, Nasdaq will confirm the company's compliance with the Bid Price Rule. However, if the company fails to meet this requirement by the September 9 deadline, it risks receiving a notice of delisting.
In such a scenario, Citius Pharmaceuticals would have the opportunity to appeal the delisting decision before a Nasdaq hearings panel. The company's request for a hearing would postpone any suspension or delisting actions until the panel's verdict is delivered.
Currently, the trading of Citius Pharmaceuticals' common stock remains unaffected, continuing to be listed on the Nasdaq Capital Market under the ticker symbol "CTXR." The company is exploring various strategies to regain compliance with the Nasdaq's requirements. Nevertheless, there is no certainty that Citius Pharmaceuticals will be able to meet the Bid Price Rule or maintain compliance with other listing standards.
Investors are monitoring the situation, as the company's ability to regain and sustain compliance could influence its continued presence on the Nasdaq Capital Market. The information for this article is based on a press release statement.
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