KemPharm, Inc. (NASDAQ:KMPH) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On May 17, 2019, KemPharm, Inc., or the Company, received a letter from the Listing Qualifications Department of The NASDAQ Stock Market, LLC, or NASDAQ, notifying the Company that the listing of its common stock was not in compliance with NASDAQ Listing Rule 5450(b)(2)(A) for continued listing on the NASDAQ Global Market, as the market value of the Company’s listed securities was less than $50.0 million for the previous 30 consecutive business days. Under NASDAQ Listing Rule 5810(c)(3)(C), the Company has a period of 180 calendar days, or until November 13, 2019, to regain compliance with the rule referred to in this paragraph. To regain compliance, during this 180-day compliance period, the Company’s market value of listed securities must close at $50.0 million or more for a minimum of 10 consecutive business days. The notice has no present impact on the listing of the Company’s securities on the NASDAQ Global Market.
In the event that the Company does not regain compliance with the NASDAQ Listing Rules prior to the expiration of the 180-day compliance period, it will receive written notification from NASDAQ that its securities are subject to delisting. At that time, the Company may appeal the delisting determination to a hearings panel to the procedures set forth in the applicable NASDAQ Listing Rules. If the Company does not regain compliance within the 180-day compliance period, it may also transfer the listing of its common stock to the NASDAQ Capital Market, provided that the Company then meets the applicable requirements for continued listing on the NASDAQ Capital Market based on the Company’s most recent public filings and market information, including the minimum market value of listed securities requirement of $35.0 million.
The Company intends to actively monitor its market value of listed securities and, as appropriate, will consider available options to resolve the deficiencies and regain compliance with the NASDAQ Listing Rules, including applying to transfer to the NASDAQ Capital Market.
There can be no assurance that the Company will be successful in maintaining the listing of its common stock on the NASDAQ Global Market, or, if transferred, on the NASDAQ Capital Market. This could impair the liquidity and market price of its common stock. In addition, the delisting of its common stock from a national exchange could have a material adverse effect on the Company’s access to capital markets, and any limitation on market liquidity or reduction in the price of its common stock as a result of that delisting could adversely affect the Company’s ability to raise capital on terms acceptable to the Company, or at all.
About KemPharm, Inc. (NASDAQ:KMPH)
KemPharm, Inc. is a clinical-stage specialty pharmaceutical company. The Company is engaged in the discovery and development of prodrugs. The Company uses its Ligand Activated Therapy (LAT) platform technology to create prodrugs. The Company’s product candidate, KP201/APAP, consists of KP201, its prodrug of hydrocodone, which is combined with acetaminophen (APAP). The Company is developing KP201/APAP as an immediate release (IR), a product candidate for the short-term, or no longer than 14 days for the management of acute pain. The Company has designed KP201/APAP with abuse-deterrent properties to address the epidemic of opioid abuse in the United States. The Company also focuses on developing the pipeline of additional prodrug product candidates that targets pain and attention deficit hyperactivity disorder (ADHD). The Company’s products include KP201/IR (APAP-free), KP511/ER, KP415, KP606/IR and KP746.
