CollabRx Inc (NASDAQ:CLRX) reported a couple of weeks ago, receipt of a letter from the NASDAQ Capital Market highlighting that the bid price of the CLRX common stock for the last thirty successive business days ended below the minimum $1 per share mark needed for continued listing on NASDAQ platform. The notification letter doesn’t imply immediate delisting of the common stock.
The process
CollabRx has grace period of one hundred and eighty calendar days to regain compliance. If during the grace period, the minimum bid price of the company’s common stock ends at or above $1 for a minimum of ten successive business days, CollabRx will regain compliance and the ongoing issue will be closed.
However, if the company fails to regain compliance within 180 days grace period, it may be provided an additional 180-day grace period, only if CollabRx Inc (NASDAQ:CLRX) fulfills the continued listing conditions for market value of openly held shares and other initial listing requirements for The NASDAQ Capital Market.
The requirements
The company needs to submit a written notice of its plan to solve the minimum bid problem during the second grace period by opting for a reverse stock split, if required. In failure of regaining compliance by the close of second grace period, CLRX would be delisted.
CollabRx Inc (NASDAQ:CLRX) management plans to monitor CLRX price and is evaluating available measures that could be implemented to regain compliance if the share price trades below the $1 per share mark at the end of the assigned grace period.
The deal
Back in April, MEDYTOX SOLUTIONS (OTCBB:MMMS) and CollabRx reported that they had finalized a definitive merger deal. Since then, both entities have been working to conclude a joint proxy statement on Form S-4, which is anticipated to be submitted with the SEC later in June. Closing of the merger deal is subject to, obtaining stockholder acceptance, regulatory approvals and other necessary customary closing terms.
The combined new entity will be required to fulfill the NASDAQ initial listing conditions. By doing so, the company can also address the existing problem of bid price deficiency.
CollabRx Inc (NASDAQ:CLRX) has gained 12.83% in the current trading session and is trading close to $0.880, on a volume of 949,586 shares.
