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Bruush Oral Care Inc. (BRSH) received a delisting notice from Nasdaq due to its common shares trading below $1 for ten consecutive days. The company also failed to meet the $1 minimum bid price requirement. A hearing before a Panel is scheduled for April 25, 2024, where the company will present a plan to regain compliance.
Negative
- The company faces delisting from Nasdaq due to low share prices and failure to meet the minimum bid price requirement, potentially impacting investor confidence and market perception.
The notice of delisting received by Bruush Oral Care Inc. from Nasdaq due to non-compliance with the Listing Rule 5810(c)(3)(A)(iii) is a significant event that signals potential distress within the company. The persistent low bid price of the company’s common shares suggests a lack of investor confidence, which can be attributed to various factors such as poor financial performance, loss of competitive edge, or unfavorable market conditions. The delisting process is critical as it may affect the company’s ability to raise capital and its visibility in the market.
Moreover, the impending hearing with the Nasdaq Hearings Panel provides an opportunity for the company to present a plan to regain compliance. The outcome of this hearing will be crucial for the company’s future on the stock exchange. If Bruush Oral Care Inc. fails to convince the Panel, the consequences could include reduced liquidity for shareholders and decreased access to investment, which might further impact the company’s operational capabilities.
Considering a reverse share split as a potential remedy to regain compliance is a strategic move that could help increase the per-share price. However, it is important to note that such corporate actions do not address the underlying issues that may have led to the stock’s decline. Shareholders and potential investors should closely monitor the company’s strategy and execution leading up to and following the hearing.
The notification of potential delisting from a major stock market like Nasdaq is a red flag for investors and stakeholders of Bruush Oral Care Inc. The stock’s failure to meet the minimum bid price requirement is a critical indicator of the company’s market valuation and investor perception. Such a scenario often leads to increased volatility and can trigger a sell-off, further driving down the stock price.
From a financial perspective, the company’s ability to present a viable plan to the Nasdaq Hearings Panel will be under scrutiny. Investors will be looking for a comprehensive strategy that addresses not just the stock price, but also the operational and financial challenges that the company faces. The potential for a reverse share split may provide a temporary solution to the stock price issue, but it could also dilute existing shareholder value if not accompanied by a solid plan for growth and profitability.
It is essential for investors to assess the company’s fundamentals and future prospects in light of this development. The Panel’s decision, which will be made after the scheduled hearing, will have significant implications for the company’s ability to attract future investments and maintain a stable shareholder base.
The legal process initiated by Bruush Oral Care Inc. in response to the Nasdaq delisting notice is a procedural step that allows the company to address the compliance issues with the Listing Rules. The Nasdaq Listing Rule 5800 Series outlines the procedures for appeal, which includes a hearing before the Panel. During this hearing, the company will have the opportunity to present legal and financial arguments to support its case for continued listing.
The legal implications of delisting are significant, as it may affect contractual obligations with creditors and suppliers that are often contingent on the company’s listed status. Furthermore, the company’s governance practices and disclosure obligations may come under scrutiny during the hearing process. The legal team of Bruush Oral Care Inc. must ensure that all arguments are well-founded and that any proposed plan to regain compliance is legally sound and adheres to the regulatory requirements.
Stakeholders should be aware of the legal nuances of the delisting process and the potential impacts on the company’s obligations and operations. The decision of the Panel, whether favorable or not, will have legal ramifications for the company’s status as a publicly-traded entity and its governance moving forward.
VANCOUVER, BC / ACCESSWIRE / March 1, 2024 / Bruush Oral Care Inc. (NASDAQ:BRSH) (the “Company”), today announced that it has received a notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market, LLC (“Nasdaq”) on February 27, 2024 notifying the Company of Nasdaq’s determination to delist the Company’s common shares from The Nasdaq Capital Market because the Company’s common shares had a closing bid price of $0.10 or less for ten consecutive trading days as of February 26, 2024, which triggered a notice of delisting pursuant to Nasdaq Listing Rule 5810(c)(3)(A)(iii) (the “Low Priced Stocks Rule”).
In addition to the Low Priced Stocks Rule delisting notice, as previously reported, the Company also currently fails to satisfy the requirement that the closing bid price of its common shares remain at $1.00 or higher, as required by Nasdaq Listing Rule 5550(a)(2), and had received a notice from Nasdaq in that regard on November 15, 2023.
The Notice stated that the Company may appeal the Staff’s determination to a Hearings Panel (the “Panel”) pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series. On February 28, 2023, the Company requested a hearing before the Panel. The hearing has been scheduled for April 25, 2024.
The hearing process automatically stays the suspension of the Company’s common shares pending the Panel’s decision and the expiration of any additional extension period granted by the Panel following the hearing. At the hearing, the Company intends to present a plan to regain compliance with the applicable rules for continued listing. There can be no assurance as to the decision of the Panel.
The Company intends to monitor the closing bid price of its ordinary shares and may, if appropriate, consider implementing available options, including a reverse share split, to regain compliance with the Nasdaq Listing Rules for continued listing on Nasdaq.
About Bruush Oral Care Inc.
Bruush Oral Care Inc. is on a mission to inspire confidence through brighter smiles and better oral health. Founded in 2018, Brüush is an oral care company that is disrupting the space by reducing the barriers between consumers and access to premium oral care products. The Company is an e-commerce business with a product portfolio that currently consists of a sonic-powered electric toothbrush kit and brush head refills. Brüush has developed a product to make upgrading to an electric brush appealing with three core priorities in mind: (i) a high-quality electric toothbrush at a more affordable price than a comparable electric toothbrush from the competition; (ii) a sleek, countertop-friendly design; and (iii) a convenient brush head refill subscription program that eliminates the frustrating experience of purchasing replacement brush heads at the grocery/drug store. The Company is rooted in building a brand that creates relevant experiences and content, with the goal of becoming the go-to oral care brand for millennials and Generation Z.
For more information on Brüush visit: https://bruush.com
Safe Harbor Forward-Looking Statements
This press release of Bruush Oral Care Inc. contains “forward-looking statements”. Words such as “may”, “will”, “could”, “should”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” and other comparable terminology are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses its vision, its strategy, and its products. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there could be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking statements except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statement, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements.
Contact: support@bruush.com
SOURCE: Bruush Oral Care Inc.
View the original press release on accesswire.com
Bruush Oral Care Inc. (BRSH) received a delisting notice from Nasdaq because its common shares had a closing bid price of $0.10 or less for ten consecutive trading days as of February 26, 2024, violating Nasdaq Listing Rule 5810(c)(3)(A)(iii).
The minimum bid price requirement for Nasdaq listing is $1.00 per share, as per Nasdaq Listing Rule 5550(a)(2). Bruush Oral Care Inc. (BRSH) failed to meet this requirement, leading to a notice from Nasdaq.
The hearing for Bruush Oral Care Inc. (BRSH) regarding the delisting notice is scheduled for April 25, 2024, where the company will present a plan to regain compliance with Nasdaq’s listing rules.
Bruush Oral Care Inc. (BRSH) may consider implementing available options, including a reverse share split, to regain compliance with Nasdaq’s listing rules for continued listing on the exchange.
