CNS Pharmaceuticals Inc. (CNSP) shares are experiencing a dramatic surge, soaring by 86% to 29 cents on Wednesday morning. This unexpected surge is directly tied to a delisting notice the company received from Nasdaq on September 12. The notice stated that CNSP’s stock had fallen short of the required minimum bid price of $1.00 per share for 30 consecutive business days, a key requirement for continued listing on the Nasdaq Capital Market.
Typically, companies facing this situation are granted a 180-day grace period to regain compliance. However, CNS Pharmaceuticals is ineligible for this extension due to a series of reverse stock splits totaling a staggering 250-to-1 ratio over the past two years. These splits, while designed to artificially boost share price, have also significantly impacted the company’s standing on the Nasdaq.
Undeterred, CNS Pharmaceuticals has requested a hearing, scheduled for November 5, to plead its case. This hearing provides a temporary reprieve, delaying any immediate delisting actions. However, the SEC filing issued by CNS Pharmaceuticals acknowledges the uncertainty surrounding this process, stating that there’s no guarantee of an additional extension being granted.
The dramatic price movement in CNSP shares highlights the precarious situation the company faces. While the 86% surge suggests investor optimism, the ultimate fate of CNS Pharmaceuticals remains uncertain. It is crucial to remember that a delisting from a major exchange like Nasdaq can severely impact a company’s visibility, investor confidence, and access to capital. The upcoming hearing in November will be a pivotal moment for CNS Pharmaceuticals as it fights to secure its future on the Nasdaq.