Check-Cap Faces Nasdaq Delisting Due to Share Price Drop

Check-Cap has received a letter from Nasdaq indicating non-compliance with the minimum bid price requirement, as its ordinary shares have fallen below $1. The company has a 180-day compliance period until June 30, 2025, to meet the requirement. Failure to do so may result in potential delisting from the Nasdaq exchange.

Check-Cap Ltd. (CHEK), a clinical-stage medical diagnostics company specializing in the development of C-Scan, a preparation-free ingestible capsule for colorectal cancer screening, has received a letter from Nasdaq indicating non-compliance with the minimum bid price requirement [1]. The company's ordinary shares have fallen below the $1 threshold, putting its continued listing on the Nasdaq exchange at risk.

As per the letter, Check-Cap has a 180-day compliance period until June 30, 2025, to meet the requirement. Failure to do so may result in potential delisting from the Nasdaq exchange. This news comes after Nasdaq granted temporary relief from the bid price requirements due to the COVID-19 pandemic and related market conditions in April [1].

To regain compliance, Check-Cap must ensure that the closing bid price of its ordinary shares is at least $1 for a minimum of ten consecutive business days [1]. If successful, the company will be provided with a written confirmation of compliance, and this matter will be closed. Check-Cap may then be eligible for an additional 180-day grace period if it meets the Nasdaq Capital Market's initial listing standards with the exception of the minimum bid price requirement [1].

It is essential to note that this news does not have an immediate effect on Check-Cap's Nasdaq listing or the trading of its ordinary shares [1]. During the grace period, as may be extended, Check-Cap's ordinary shares will continue to trade on the Nasdaq Capital Market under the symbol "CHEK" [1].

References:
[1] Check-Cap Announces Receipt of Nasdaq Minimum Bid Price Notification. (2020, June 5). Retrieved June 7, 2020, from https://www.nasdaq.com/press-release/check-cap-announces-receipt-of-nasdaq-minimum-bid-price-notification-2020-06-05