IntelliPharmaCeutics International Inc (NASDAQ: IPCI) is having an overwhelmingly rough time in the market today, and for good reason. The company announced that it has received a notice of non-compliance from the NASDAQ. Of course, the news upset investors who sent the stock tumbling down, only making matters worse regarding the notice. Today, we’ll talk about:
- The notice;
- what we’re seeing from IPCI stock as a result; and
- what we’ll be watching for ahead.
IPCI Announces Notice Of Non-Compliance
As mentioned above, IntelliPharmaceutics International is having a rough day in the market today after announcing that it has received a notice from the NASDAQ. In a press release issued this morning, the company said that it has received written notification from The Nasdaq Stock Market LLC. In the notice, the NASDAQ informed IPCI that the minimum bid price per share of its common stock was below $1.00 for a period of 30 consecutive business days.
As a result of the company’s share price falling below this mark, it is not currently in compliance with the Nasdaq Listing Rule 5550(a)(2) and may be delisted. In the release, IPCI said that it is not eligible for a grace period to regain compliance.
The company has been struggling with NASDAQ listing requirements and recently regained compliance on October 26, 2018. However, at this point, the Nasdaq Staff is set to issue a Staff Delisting Determination. It is important to mention that the company is afforded a hearing before the Panel and intends on taking that opportunity. However, there is no assurance that this hearing will result in an extension being granted or that the company will have the ability to regain compliance.
While the stock may be delisted from the NASDAQ, there is a silver lining here. IPCI trades on the Toronto Stock Exchange and this news does not affect its listing there.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Intellipharmaceutics International, the news proved to be negative. After all, there’s a good chance that the company may be delisted from the NASDAQ, ultimately limiting its access to capital. So, it comes as no surprise to see that upset investors are abandoning ship, sending the stock tumbling down. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (2:22), IPCI is trading at $0.41 per share after a loss of $0.16 per share or 27.77% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on IPCI. In particular, we’re interested in following the company’s plans to regain compliance, if it is at all possible. While it looks like a delisting may be on the horizons, the company may pull a rabbit out of the hat during the Panel meeting and find a way to avoid it. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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