Acura Pharmaceuticals, Inc. (NASDAQ:ACUR) investors are running for the hills, after the drug announced that its shares will be delisted from the NASDAQ Stock Market. Acura shares are falling nearly 23% in after-hours trading.
Acura said that shares of its common stock will begin to trade on the OTCQB® Market, which is operated by OTC Markets Group Inc., under the symbol “ACUR” on February 23, 2017.
On August 16, 2016 the Company received a written notification from The NASDAQ Stock Market LLC (“NASDAQ”) notifying the Company that it had failed to comply with NASDAQ Listing Rule 5550(b)(1) (the “Rule”) due to the Company’s failure to maintain a minimum of $2.5 million in stockholders’ equity (or meet the alternatives of market value of listed securities of $35 million or net income from continuing operations). On October 6, 2016, the Company received a letter from NASDAQ indicating that the Company was afforded until February 10, 2017 to regain compliance with the minimum stockholders’ equity requirement of $2.5 million, as set forth in the Rule.
The Company was unable to regain compliance with the Rule prior to February 10, 2017 and as a result on February 14, 2017, the Company received written notification from the NASDAQ’s staff stating that the Company’s Common Stock is subject to delisting from the NASDAQ Capital Market, subject to the Company’s right to appeal. The Company does not intend to request an appeal of the delisting determination. The NASDAQ delisting determination will become final and trading in the Company’s Common Stock on the NASDAQ Capital Market will be discontinued effective at the opening of business on February 23, 2017. The Company was also notified that NASDAQ will complete the delisting by filing a Form 25-NSE with the U.S. Securities and Exchange Commission.
The transition to the OTCQB® Market does not affect the Company’s business operations and does not change its public reporting requirements with the US Securities and Exchange Commission.
Acura Pharmaceuticals, Inc. operates as a pharmaceutical company, which engages in the research, development and commercialization of products intended to address medication abuse and misuse, utilizing its proprietary aversion and impede technologies. It operates its business through the research, development, and manufacture of innovative abuse deterrent, orally administered pharmaceutical products.