Egalet Corporation (NASDAQ:EGLT) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of ListingItem 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Ruleor Standard; Transfer of Listing
As previously disclosed by Egalet Corporation (the “Company”) on a Current Report on Form8-K filed with the Securities and Exchange Commission on November24, 2017, the Company received a deficiency notice, dated November24, 2017, from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company was not in compliance with The Nasdaq Global Market continued listing requirement set forth in Nasdaq’s Listing Rule5450(b)(2)(A)(the “Minimum Market Value Rule”), as the minimum market value of the Company’s common stock had been below $50 million for 30 consecutive business days. In accordance with Nasdaq Listing Rule5810(c)(3)(C), the Company was provided an initial grace period of 180 calendar days, or until May23, 2018, to regain compliance with the Minimum Market Value Rule.
On May24, 2018, the Company received a letter from Nasdaq indicating that the Company did not regain compliance with the $50 million minimum market value requirement for continued listing, as set forth in the Minimum Market Value Rule, by the previously established deadline of May23, 2018. As a result, the Company’s common stock would be subject to delisting unless the Company timely requests a hearing before a Nasdaq Hearings Panel. Accordingly, the Company plans to request a hearing before the Nasdaq Hearings Panel in a timely manner to present its plan to regain compliance with the listing requirements. The request for a hearing will stay any suspension or delisting action pending the issuance of the decision of the Nasdaq Hearings Panel following the hearing and the expiration of any additional extension granted by the Nasdaq Hearings Panel. In that regard, the Nasdaq Hearings Panel has the authority to grant the Company up to an additional 180 calendar days, as measured from May24, 2018, in which to regain compliance. The Company is considering all of its options to regain compliance; however, there can be no assurance that the Nasdaq Hearings Panel will grant the Company’s request for continued listing or that the Company will be able to evidence compliance with the continued listing criteria within the period of time that the Nasdaq Hearings Panel may grant.
Also as previously reported, on March8, 2018, the Company received a notice from Nasdaq that the Company was not in compliance with Nasdaq’s Listing Rule5450(a), as the closing bid price of the Company’s common stock had been below $1.00 for the previous 30 consecutive business days. The Company was provided with an initial grace period of 180 calendar days, or until September4, 2018, to regain compliance with the minimum bid price requirement.
Certain statements in this Current Report on Form8-K are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “opportunity” and “should,” among others. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. The Company does not undertake an obligation to update or revise any forward-looking statements. Investors should read the risk factors set forth in the Company’s Form10-K for the year ended December31, 2017, and periodic reports filed with the Securities and Exchange Commission.
