Neuralstem, Inc. (NASDAQ: CUR) is facing the threat of losing its NASDAQ listing on two accounts. The stock’s market price of about $0.30 is well below the minimum price requirement of $1 for continued listing on NASDAQ. The other issue posing delisting risk for Neuralstem is that the market value of its listed securities dipped below $35 million for 30 consecutive business days.
In one case, Neuralstem, Inc. (NASDAQ: CUR) has until October 17, 2016 to regain compliance on the issue of the minimum bid price on the stock. As for the issue of market value, the company has until February 6, 2017 to regain compliance.
What’s the management doing?
The management of Neuralstem said that it is taking the noncompliance issues seriously. As such, it is exploring the available options to ensure that Neuralstem doesn’t lose its listing on NASDAQ. But specifics on how the management intends to regain compliance have not been disclosed. In the case of the minimum bid price on a stock falling below the required standard, sometimes companies choose the path of stock consolidation through a reverse split transaction.
Wall Street is optimistic
Though Neuralstem, Inc. (NASDAQ: CUR) appears to be facing delisting threat, some analysts on Wall Street maintain a bullish outlook on the stock. For instance, analysts at Brean Capital have a BUY rating on the stock. Though the analysts recently cut their price estimate on the stock of Neuralstem to $4 from $8, the new price target still indicate a decent upside potential.
One of the reasons Brean is optimistic on the prospects of Neuralstem is that it sees the company making progress with its clinical and preclinical programs, which if successful should generate massive revenue. Additionally, Neuralstem’s cost-saving measures make the analysts confident that the company will soon shake off many of its financial problems. Among the measures that Neuralstem has taken to preserve cash is reduction of compensation for non-employee directors, whose annual pay has now dropped to $100,000 from $200,000.
How Neuralstem, Inc. NASDAQ: CUR fared in 2Q
Neuralstem, Inc. (NASDAQ: CUR) generated revenue of $3,000 in 2Q2016 and logged EPS loss of $0.04.