Eargo, Inc.: Nasdaq/NYSE listing notice — Eargo regains equity listing compliance but faces bid-price deficiency; plans reverse split

Eargo, Inc.

Regained compliance with Nasdaq minimum equity rule via market value alternative ($50M+ for 10+ consecutive days).
Previously reported stockholders' equity of ($36.3M) for Q3 2022 triggered non-compliance.
Still non-compliant with $1.00 bid price rule; has until May 16, 2023 to cure.
Stockholders approved reverse stock split at ratio from 1-for-5 to 1-for-50 to address bid price.
Expects year-end 2022 stockholders' equity above $10M after recent financing and note conversion.

item 3.01

Key facts

Extracted from this filing and checked against the source text.

Listing & Compliance Notices SEC 8-K Item 3.01 confidence 0.9

Eargo, Inc. received a nasdaq deficiency notice notice regarding minimum bid price (rules 5450(a)(1), 5810(c)(3)(A)).

Exchange: nasdaq
Notice: deficiency notice
Deficiency: minimum bid price
Rules: 5450(a)(1), 5810(c)(3)(A)

Exact text from the filing

November 17, 2022, the Company received a letter from Nasdaq indicating that, since the Company’s common stock (the “Common Stock”) had closed below Nasdaq’s $1.00 per share minimum bid price requirement for 30 consecutive business days, the Company no longer complied with Nasdaq Listing Rule 5450(a)(1) for continued listing. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has a period of 180 calendar days, or until May 16, 2023 (the “Compliance Date”), to regain compliance. If at any time before the Compliance Date the bid price for the Common Stock closes at or above $1.

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Listing & Compliance Notices SEC 8-K Item 3.01 confidence 0.9

Eargo, Inc. received a nasdaq deficiency notice notice regarding stockholders equity (rules 5450(b)(1)(A), 5450(b)(2)(A)).

Exchange: nasdaq
Notice: deficiency notice
Deficiency: stockholders equity
Rules: 5450(b)(1)(A), 5450(b)(2)(A)

Exact text from the filing

December 12, 2022, the Company received a letter from Nasdaq informing the Company that it had regained compliance with the relevant Nasdaq Listing Rule because the market value of the Company’s listed securities had been $50,000,000 or greater for more than 10 consecutive business days and, as such, the Company had satisfied the alternative listing standard set forth under Listing Rule 5450(b)(2)(A). The Company currently expects that, taking into account the net proceeds from the Company’s recently completed rights offering and note financing transaction with Patient Square Capital, as we

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Source: SEC EDGAR

accession 0001140361-22-045676

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