Sharps Technology Announces Continued Listing on Nasdaq Pending Results of an Upcoming Special Shareholders’ Meeting
Rhea-AI Summary
Sharps Technology (NASDAQ: STSS) has secured approval from Nasdaq to maintain its listing, subject to specific conditions. The company received a Determination Letter on September 9, 2024, following an August 13 hearing where it presented its compliance plan to address a bid price deficiency. Sharps Technology had previously obtained shareholder approval for a reverse split at a ratio of up to 1:8. However, due to a proposed new Exchange rule, the company now seeks approval for a higher ratio reverse split to improve long-term compliance with the bid price rule.
The Nasdaq Hearings Panel has granted Sharps Technology a brief exception period to complete the reverse split and cure its bid price deficiency. The company expects to regain compliance within this period.
Positive
- Nasdaq approval to maintain listing, subject to conditions
- Granted exception period to complete reverse split and cure bid price deficiency
- Company expects to regain compliance within the exception period
Negative
- Ongoing bid price deficiency issue
- Need for a higher ratio reverse split than initially planned
- Risk of delisting if compliance is not achieved within the exception period
Insights
The news of Sharps Technology maintaining its Nasdaq listing is a critical development for the company's market presence and investor confidence. The company's proactive approach in addressing the bid price deficiency through a proposed reverse stock split demonstrates management's commitment to maintaining compliance and shareholder value. However, the need for such measures indicates underlying challenges in maintaining share price stability.
While the extension granted by Nasdaq provides a temporary reprieve, it's important to note that reverse splits often signal financial distress and can lead to further share price volatility. Investors should closely monitor the company's fundamentals and market performance post-split to assess long-term viability. The upcoming special shareholders' meeting will be a pivotal event, potentially impacting the stock's future trajectory and liquidity.
The regulatory landscape for Nasdaq-listed companies is evolving, as evidenced by the proposed rule change that would expedite delisting for repeated bid price deficiencies. This development underscores the increasing scrutiny on listed companies and the importance of maintaining compliance with exchange requirements. Sharps Technology's case highlights the delicate balance companies must strike between immediate compliance and long-term stability.
The company's decision to seek approval for a higher reverse split ratio is a prudent legal strategy to ensure longer-term compliance. However, this approach carries risks, including potential shareholder dilution and market perception issues. Investors should be aware that while the company has secured a temporary exception, failure to meet the conditions set by Nasdaq could still result in delisting, which would have significant legal and financial implications for the company and its shareholders.
The continued listing of Sharps Technology on Nasdaq is important for maintaining investor interest and market liquidity. However, the need for a reverse stock split raises concerns about the company's underlying market performance and investor perception. Historically, reverse splits have been met with mixed reactions from the market, often leading to increased volatility and selling pressure in the short term.
The company's ability to maintain compliance post-split will be a key indicator of its market strength. Investors should pay close attention to trading volumes and price stability following the split. Additionally, the proposed Nasdaq rule change regarding repeated bid price deficiencies could set a new precedent for small-cap companies, potentially leading to more stringent compliance requirements across the board. This development may prompt a broader reassessment of small-cap investments on major exchanges, impacting market dynamics and investor strategies.
NEW YORK, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Sharps Technology, Inc., (NASDAQ: STSS and STSSW) (“Sharps Technology” or the “Company”), an innovative medical device and pharmaceutical packaging company offering patented, best-in-class syringe products, announced today that the Company has secured approval from The Nasdaq Stock Market (“Nasdaq” or the “Exchange”) to maintain its listing, subject to conditions outlined below.
On September 9, 2024, Sharps Technology received a Determination Letter from Nasdaq confirming the Company's continued listing on the Exchange. This follows the August 13, 2024, hearing with the Nasdaq Hearings Panel, where the Company presented its compliance plan.
At the August hearing, the Company’s senior management and outside counsel outlined its compliance plan to address a bid price deficiency. Previously, the Company had been granted an extension to resolve the deficiency, wherein the Company agreed to conduct a reverse split and obtained shareholder approval at a ratio of up to one share for eight. After obtaining shareholder approval, a new Exchange rule was proposed that would subject a company with a bid price deficiency to immediate delisting if the same company had experienced a bid price deficiency in the previous 12 months. As a result of this proposed rule, the Company determined to seek shareholder approval for a reverse split at a higher ratio to improve its chances of maintaining compliance with the bid price rule on a long-term basis.
The Nasdaq Hearings Panel has granted the Company a brief exception to complete a reverse split and cure its bid price deficiency. Accordingly, the Company expects to complete a reverse stock split and regain compliance with the bid price rule within the exception period granted by the Panel.
About Sharps Technology
Sharps Technology is an innovative medical device and pharmaceutical packaging company offering patented, best-in-class smart-safety syringe products to the healthcare industry. The Company’s product lines focus on providing ultra-low waste capabilities, that incorporate syringe technologies that use both passive and active safety features. Sharps also offers products that are designed with specialized copolymer technology to support the prefillable syringe market segment. The Company has a manufacturing facility in Hungary and is partnering with Nephron Pharmaceuticals to expand its manufacturing capacity in the U.S. For more information about Sharps Technology, please visit the website at: http://sharpstechnology.com.
FORWARD-LOOKING STATEMENTS:
This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” “poised” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity, and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance, or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
Investor Relations:
Dave Gentry
RedChip Companies, Inc.
1-800-RED-CHIP (733-2447)
Or 407-644-4256
STSS@redchip.com
FAQ
What is Sharps Technology's current status with Nasdaq?
Why is Sharps Technology (STSS) planning a reverse stock split?
What is the new reverse split ratio Sharps Technology (STSS) is seeking approval for?
When did Sharps Technology (STSS) receive the Determination Letter from Nasdaq?
