On March 6, 2024, ZyVersa Therapeutics, Inc., a biopharmaceutical company, received a Letter of Reprimand from the Nasdaq Staff for not complying with certain listing rules during its July 2023 public offering of common stock and warrants. The offering was deemed not to meet the definition of a 'Public Offering' under Nasdaq's rules because it was priced below the 'Minimum Price' and exceeded 20% of the outstanding shares without prior stockholder approval. Additionally, the company's repricing of warrants in July and September 2023 was aggregated with the offering, further reducing the offering price below the minimum threshold. Despite these issues, the Nasdaq Staff concluded that the company did not intentionally avoid compliance and noted no history of similar non-compliance. As a result...Show More

On March 6, 2024, ZyVersa Therapeutics, Inc., a biopharmaceutical company, received a Letter of Reprimand from the Nasdaq Staff for not complying with certain listing rules during its July 2023 public offering of common stock and warrants. The offering was deemed not to meet the definition of a 'Public Offering' under Nasdaq's rules because it was priced below the 'Minimum Price' and exceeded 20% of the outstanding shares without prior stockholder approval. Additionally, the company's repricing of warrants in July and September 2023 was aggregated with the offering, further reducing the offering price below the minimum threshold. Despite these issues, the Nasdaq Staff concluded that the company did not intentionally avoid compliance and noted no history of similar non-compliance. As a result, no further action is required from ZyVersa Therapeutics following the Letter of Reprimand. Separately, the company is addressing a Bid Price Deficiency with Nasdaq and has proposed a reverse stock split to rectify the issue. The company has filed a preliminary proxy statement for a special stockholders' meeting on April 17, 2024, to seek approval for the reverse stock split. However, ZyVersa Therapeutics is optimistic that the split may not be necessary due to positive investor sentiment following recent pharmacological data and the upcoming initiation of a phase 2a clinical trial for a diabetic kidney disease treatment, which may increase the stock price above the $1.00 minimum bid price required by Nasdaq.