ReWalk Robotics Ltd. said it received a second letter of deficiency from Nasdaq for failure to comply with certain requirements.
According to the notice, as of March 31, the company failed to reach the minimum $2.5 million shareholders' equity requirement, and the alternative $35 million market value of listed securities and $500,000 net income requirements.
The letter is a notice of deficiency, not delisting, and will have no effect on the company's listing on the Nasdaq Capital Market at the moment.
In December 2017 the company submitted a compliance plan to address the first deficiency letter, and showed compliance for the minimum shareholders' equity requirement. However, Nasdaq decided to issue a second noncompliance notice since the company had a shareholders' deficiency as of March 31. The company could only show compliance as of that date based only on a balance sheet reflecting the pro forma effect of the issuance of 4 million ordinary shares in a private placement.
Israel-based ReWalk has until July 2 to achieve compliance with the alternative $35 million market value of listed securities or submit a plan to regain compliance with any of the alternative shareholders' equity, or net income requirements.
ReWalk Robotics is a medical device company which designs and sells exoskeletons for wheelchair-bound individuals.
