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Nasdaq Accepts NLS Pharmaceutics’ Plan to Regain Listing Compliance

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NLS Pharmaceutics Ltd. (NLSP) regains compliance with Nasdaq listing requirements, given an additional 180 days to evidence compliance.
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The acceptance of NLS Pharmaceutics Ltd.'s compliance plan by Nasdaq is a pivotal development for the company's financial stability and investor confidence. The approval indicates that Nasdaq acknowledges the potential in NLS's strategy to address its stockholders' equity shortfall, which is a fundamental criterion for maintaining a listing on the exchange. This development can have a positive influence on the company's stock price as it reduces the immediate risk of delisting, which often results in reduced liquidity and investor interest.

However, the market will closely monitor the company's ability to follow through on its compliance plan. Failure to meet the conditions set by Nasdaq within the newly granted 180-day period could lead to a decline in investor sentiment and a potential delisting, which would have adverse effects on the company's capital-raising capabilities and stock valuation.

The situation with NLS Pharmaceutics highlights the importance of compliance with financial regulations for publicly-traded companies. The stockholders' equity requirement is designed to ensure that companies have sufficient capitalization to weather market volatility and protect investors. The extension granted to NLS offers the company a crucial window to strengthen its financial position, which may involve strategic initiatives such as cost restructuring, seeking additional capital, or advancing their product pipeline to stages that may attract partnership or investment.

For the broader biopharmaceutical market, this news serves as a reminder of the rigorous financial standards that companies must uphold. It also underscores the role of regulatory bodies in maintaining market integrity. Investors may view NLS's ability to devise a credible plan to regain compliance as a positive indicator of the company's management and strategic direction, potentially impacting peer companies that might be facing similar challenges.

NLS Pharmaceutics' focus on rare and complex central nervous system disorders places it within a high-risk, high-reward segment of the biotech industry. The development cycle for CNS therapies is often lengthy and capital-intensive due to the complexity of CNS disorders and the stringent regulatory environment. The company's progress in its clinical trials and its ability to regain compliance with Nasdaq's financial requirements can be seen as a proxy for its scientific and operational rigor.

Investors often rely on such regulatory milestones as indicators of a company's potential to succeed in bringing its products to market. As NLS works towards compliance, its efforts to streamline operations, secure funding and advance its clinical programs will be critical. The success of these efforts could lead to significant long-term shareholder value, given the substantial unmet medical needs in the CNS therapeutic area.

ZURICH, SWITZERLAND / ACCESSWIRE / March 11, 2024 / NLS Pharmaceutics Ltd. (NASDAQ:NLSP)(NASDAQ:NLSPW) ("NLS" or the "Company"), a Swiss clinical-stage biopharmaceutical company focused on the discovery and development of innovative therapies for patients with rare and complex central nervous system disorders, today announced that it has been notified by the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") that the Company's plan to regain compliance submitted on February 23, 2024 has been approved.

On January 9, 2024, NLS received a letter from the Listing Qualifications staff of Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it was no longer in compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain stockholders' equity of at least $2,500,000. Under Nasdaq Listing Rule 5810(c)(3)(A), the Company had been granted a period of 180 calendar days to regain compliance with the minimum bid price requirement. Upon the expiration of that grace period, on February 23, 2024, NLS submitted the Company's plan, on time, to regain compliance with Nasdaq Listing Rule 5550(b)(1).

On March 7, 2024, the Listing Qualifications Department of Nasdaq notified NLS that they had accepted the plan submitted and the Company has been afforded an additional 180 day calendar days from the date of the letter, or until July 8, 2024, to evidence compliance.

About NLS Pharmaceutics Ltd.

NLS Pharmaceutics Ltd. (Nasdaq: NLSP) is a global development-stage biopharmaceutical company, working with a network of world-class partners and internationally recognized scientists, focused on the discovery and development of innovative therapies for patients with rare and complex central nervous system, or CNS, disorders, who have unmet medical needs. Headquartered in Switzerland and founded in 2015, NLS is led by an experienced management team with a track record of developing and commercializing product candidates. For more information, please visit www.nlspharma.com.

Safe Harbor Statement

This letter contains expressed or implied forward-looking statements pursuant to U.S. Federal securities laws. For example, NLS is using forward-looking statements when it discusses the potential to regain compliance with Nasdaq's continued listing requirements. These forward-looking statements and their implications are based on the current expectations of the management of NLS only and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; NLS may encounter delays or obstacles in launching and/or successfully completing its clinical trials; NLS' products may not be approved by regulatory agencies, NLS' technology may not be validated as it progresses further and its methods may not be accepted by the scientific community; NLS may be unable to retain or attract key employees whose knowledge is essential to the development of its products; unforeseen scientific difficulties may develop with NLS' process; NLS' products may wind up being more expensive than it anticipates; results in the laboratory may not translate to equally good results in real clinical settings; results of preclinical studies may not correlate with the results of human clinical trials; NLS' patents may not be sufficient; NLS' products may harm recipients; changes in legislation may adversely impact NLS; inability to timely develop and introduce new technologies, products and applications; and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of NLS to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, NLS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting NLS is contained under the heading "Risk Factors" in NLS' annual report on Form 20-F for the year ended December 31, 2022 filed with the Securities and Exchange Commission ("SEC"), which is available on the SEC's website, www.sec.gov, and in subsequent filings made by NLS with the SEC.

For additional information:

Marianne Lambertson (investors & media)
NLS Pharmaceutics Ltd.
+1 239.682.8500
ml@nls-pharma.com
www.nlspharmaceutics.com

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SOURCE: NLS Pharmaceutics AG



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FAQ

What is the recent announcement by NLS Pharmaceutics Ltd. (NLSP)?

NLS Pharmaceutics Ltd. (NLSP) has announced that its plan to regain compliance with Nasdaq listing requirements has been approved, and the company has been given an additional 180 days to evidence compliance.

Why was NLS Pharmaceutics Ltd. (NLSP) not in compliance with Nasdaq listing requirements?

NLS Pharmaceutics Ltd. (NLSP) was not in compliance with Nasdaq listing requirements due to falling below the minimum stockholders' equity requirement of $2,500,000.

What action did NLS Pharmaceutics Ltd. (NLSP) take to regain compliance?

NLS Pharmaceutics Ltd. (NLSP) submitted a plan to regain compliance with Nasdaq listing requirements on February 23, 2024, which was accepted by the Listing Qualifications Department of Nasdaq.

How much time has NLS Pharmaceutics Ltd. (NLSP) been given to evidence compliance?

NLS Pharmaceutics Ltd. (NLSP) has been given an additional 180 calendar days from the date of the notification to evidence compliance, extending until July 8, 2024.

NLS Pharmaceutics Ltd.

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mission & values to serve our patients we design affordable, safe and effective therapeutics to safeguard and empower the brain throughout all stages of life. we value partnership and integrity, we are ethical and responsible and show respect and compassion for our patients. r&d strategy the successful companies of tomorrow are those that go beyond delivering products to delivering real solutions and services. r&d is the cornerstone of our company and we promote ingenuity through an effective intellectual property policy. the advancements in science mean that more targeted, more (cost-)effective treatments are within reach and we are here to take on this challenge. our innovative r&d is centered on patients’ needs and delivering affordable, safe and effective solutions. not only will these enable us to improve access to quality healthcare and meet unmet needs, but they will also deliver the sustainable growth required to allow us to continue to invest in innovative research & developm