Company: SPRB
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000950170-25-064463
Chunk: 1

Company: SPRUCE BIOSCIENCES, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1A
Chunk 1
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 with the Minimum Bid Price Requirement, our common stock will be delisted from Nasdaq and trading in the Company’s stock will be suspended at the open of trading on April 29, 2025. In connection with the delisting and suspension, we expect that Nasdaq will file a Form 25-NSE with the Securities and Exchange Commission, which will remove our securities from listing and registration on Nasdaq.

We appealed Nasdaq’s determination to its Hearings Panel pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series. However, pursuant to Nasdaq Listing Rule 5815(a)(1)(B)(ii)(d), a timely request for a hearing will not stay the trading suspension of the our common stock as we were afforded the second 180 days compliance period described in Nasdaq Listing Rule 5810(c)(3)(A)(ii) and failed to regain compliance with the Minimum Bid Price Requirement during such period.

As a result of the suspension in trading and expected delisting, our common stock began trading publicly on the over-the-counter market on April 29, 2025 under its existing symbol “SPRB”. The Company intends to submit a plan to regain compliance to that effect to the Hearings Panel as part of the hearing process; however, there can be no assurances that the Hearings Panel will grant any request for continued listing or that the Company will be able to regain compliance with the applicable listing criteria within the period of time that may be granted by the Hearings Panel.

A delisting of our common stock could negatively impact us by, among other things, reducing the liquidity and market price of our common stock; reducing the number of investors willing to hold or acquire our common stock, which could negatively impact our ability to raise equity financing; decreasing the amount of news and analyst coverage of us; resulting in a determination that the common stock is a “penny stock” which would require brokers trading in the common stock to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for shares of common stock; limiting our ability to issue additional securities or obtain additional financing in the future; and impairing our ability to provide equity incentives to our employees. In addition, delisting from Nasdaq may negatively impact our reputation and, consequently, our business.

An active, liquid and orderly trading market for our common stock may not be sustained.*

Prior to the closing of our IPO in October 2020, there was no public market for shares of our common stock.