Zomedica Provides NYSE American Listing Update
Zomedica Corp. is in dialogue with NYSE American to regain compliance with listing standards after receiving a notice in 2023. The company held a Special Meeting of Shareholders but failed to effect a share consolidation action. CEO Larry Heaton is optimistic about the future despite the risk of delisting.
Negative
Zomedica failed to effect an 80:1 share consolidation action at a Special Meeting of Shareholders, risking delisting if share price deteriorates further.
The situation with Zomedica Corp. reflects a critical juncture for the company's relationship with the stock exchange and its investors. The inability to execute an 80:1 reverse stock split due to the lack of shareholder approval indicates a significant disconnect between the company's management and its shareholders. This failed corporate action suggests a lack of confidence in the management's strategy or a misalignment regarding the company's valuation and future prospects.
From a market perspective, the ongoing dialogue with NYSE American is a positive sign, showing that the company is actively seeking solutions to maintain its listing status. However, the mention of potential delisting due to additional deterioration in share price is a red flag that may concern investors. It highlights the urgency for Zomedica to not only communicate its progress and opportunities but also to deliver tangible results that can be reflected in its financial performance and, subsequently, its stock price.
Investors and potential investors should closely monitor Zomedica's future announcements and performance metrics, as these will be critical in determining the company's ability to sustain its stock price and comply with listing standards. The implications of a delisting could be severe, including reduced liquidity and access to capital markets, which would impact the company's ability to fund operations and growth initiatives.
The notice of non-compliance received by Zomedica from the NYSE American is a significant financial event that directly affects the company's stock market presence and investor perception. The reference to Section 1003(f)(v) indicates that the company's share price has fallen below a level acceptable to the exchange, which typically requires a minimum average share price to maintain listing.
Financially, the failure to execute the reverse stock split could be interpreted as a missed opportunity to adjust the share structure and potentially stabilize the stock price. This decision, or lack thereof, may have implications for the company's market capitalization and could influence investor confidence in the company's governance and long-term viability. Moreover, the CEO's statement about highlighting the company's progress suggests a need to improve investor relations and market sentiment.
Given the current situation, stakeholders should evaluate the company's operational performance, market position in the veterinary health sector and the execution of its strategic plans. These factors will play a crucial role in Zomedica's ability to regain compliance and avoid the consequences of a delisting, which could include diminished investor interest and a challenging fundraising environment.
Zomedica's core business in the veterinary health sector, focusing on point-of-care diagnostics and therapeutic products for animals, is a niche yet growing market. The company's performance in this sector is critical to understanding its potential for price improvement and compliance with NYSE American's listing standards.
The demand for veterinary care and advanced diagnostics is on the rise, driven by increased pet ownership and a greater focus on animal health and welfare. Zomedica's ability to capitalize on these trends and effectively communicate its value proposition to the market is essential. The CEO's reference to the company's progress over the years and future opportunities indicates that Zomedica may have a solid product portfolio or pipeline that could drive growth. However, the failure to implement the reverse stock split raises questions about the company's strategic decision-making and ability to adapt to market conditions.
Stakeholders, including veterinary professionals and investors interested in the animal health industry, should consider the company's technological advancements, competitive positioning and the potential impact of regulatory changes on its business model. These aspects are vital for Zomedica to maintain investor interest and achieve a stock price that reflects its intrinsic value.
03/13/2024 - 04:45 PM
ANN ARBOR, MI / ACCESSWIRE / March 13, 2024 / Zomedica Corp. (NYSE American:ZOM) ("Zomedica" or the "Company"), a veterinary health company offering point-of-care diagnostics and therapeutic products for equine and companion animals, today announced that it is continuing dialogue with senior regulatory staff at the NYSE American regarding next steps to regaining compliance with its listing standards. Zomedica shares will remain listed on the NYSE American at this time.
As announced on September 13, 2023, Zomedica received formal notice from the NYSE American that it was not in compliance with continued listing standards as set forth in Section 1003(f)(v) of the NYSE American Company Guide. According to the notice, the Company had a reasonable period of time, which was determined to be March 12, 2024, to effect a reverse stock split or otherwise demonstrate sustained price improvement.
While the notice did not result in an immediate delisting of Zomedica's common shares, it did prompt the Company to announce that it would undertake certain cure measures to regain compliance.
A Special Meeting of Shareholders was held on February 28, 2024, with the company unable to effect an 80:1 share consolidation corporate action by a required majority of 67.7% votes as set forth by the Company's bylaws.
Larry Heaton, Chief Executive Officer of Zomedica Corp. stated, "Following the rejection of our proposed reverse stock split, we have been in contact with the NYSE American to understand the implications for Zomedica's continued listing. The exchange has indicated that they will continue to monitor our share price and other developments and noted that additional deterioration of the share price could result in delisting. This gives us time to continue to highlight the progress the Company has made over the last several years, and the tremendous opportunities ahead, to positively impact our share price."
About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American:ZOM) is a veterinary health company creating products for horses, dogs, and cats by focusing on the unmet needs of clinical veterinarians. Zomedica's product portfolio includes innovative diagnostics and medical devices that emphasize patient health and practice health. Zomedica's mission is to provide veterinarians the opportunity to increase productivity and grow revenue while better serving the animals in their care. For more information, visit www.zomedica.com .
About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American: ZOM) is a veterinary health company creating products for horses, dogs, and cats by focusing on the unmet needs of clinical veterinarians. Zomedica's product portfolio includes innovative diagnostics and medical devices that emphasize patient health and practice health. Zomedica's mission is to provide veterinarians the opportunity to increase productivity and grow revenue while better serving the animals in their care. For more information, visit www.zomedica.com .
Follow Zomedica
Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements relating to our expectations regarding future results. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, including assumptions with respect to economic growth, demand for the Company's products, the Company's ability to produce and sell its products, sufficiency of our budgeted capital and operating expenditures, the satisfaction by our strategic partners of their obligations under our commercial agreements, our ability to realize upon our business plans and cost control efforts and the impact of COVID-19 on our business, results and financial condition.
Our forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: the outcome of clinical studies, the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments, uncertainty as to whether our strategies and business plans will yield the expected benefits; uncertainty as to the timing and results of development work and verification and validation studies; uncertainty as to the timing and results of commercialization efforts, as well as the cost of commercialization efforts, including the cost to develop an internal sales force and manage our growth; uncertainty as to our ability to successfully integrate acquisitions; uncertainty as to our ability to supply products in response to customer demand; uncertainty as to the likelihood and timing of any required regulatory approvals, and the availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; veterinary acceptance of our products; competition from related products; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; performance by our strategic partners of their obligations under our commercial agreements, including product manufacturing obligations; risks pertaining to permits and licensing, intellectual property infringement risks, risks relating to any required clinical trials and regulatory approvals, risks relating to the safety and efficacy of our products, the use of our products, intellectual property protection, risks related to the COVID-19 pandemic and its impact upon our business operations generally, including our ability to develop and commercialize our products, and the other risk factors disclosed in our filings with the SEC and under our profile on SEDAR+ at www.sedarplus.com
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Investor Relations Contact:
Zomedica Investor Relationsinvestors@zomedica.com
SOURCE: Zomedica Corp.
press release on accesswire.com
What is Zomedica Corp. (ZOM) currently doing to regain compliance with NYSE American listing standards?
Zomedica Corp. is in dialogue with senior regulatory staff at NYSE American to determine next steps for regaining compliance.
When did Zomedica receive a notice of non-compliance with NYSE American listing standards?
Zomedica received a notice of non-compliance on September 13, 2023.
What action did Zomedica fail to effect at a Special Meeting of Shareholders?
Zomedica failed to effect an 80:1 share consolidation corporate action at a Special Meeting of Shareholders.
Who is the Chief Executive Officer of Zomedica Corp.?
Larry Heaton is the Chief Executive Officer of Zomedica Corp.
What could happen if Zomedica's share price deteriorates further?
Further deterioration of Zomedica's share price could result in delisting from NYSE American.
