Company: SPRB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0000950170-25-108888
Chunk: 1

Company: SPRUCE BIOSCIENCES, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1A
Chunk 1
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’s stock was suspended at the open of trading on April 29, 2025. We appealed Nasdaq’s determination to its Hearings Panel pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series and submitted a plan to regain compliance with the Minimum Bid Price Requirement (the “Compliance Plan”) to that effect to the Hearings Panel as part of the hearing process. On May 29, 2025, the Company met with the Hearings Panel to discuss the Compliance Plan. On June 9, 2025, we received a letter from the Hearings Panel stating that our appeal was accepted.

On July 23, 2025, we filed with the Secretary of State of the State of Delaware an Amendment to our Amended and Restated Certificate of Incorporation to effect a one-for-seventy-five (1:75) reverse stock split of our outstanding common stock (the “Reverse Stock Split”). A series of alternate amendments to effect the Reverse Stock Split was approved by our stockholders at the Annual Meeting of Stockholders held on July 22, 2025, and the specific one-for-seventy-five (1:75) ratio was subsequently approved by our Board of Directors on July 23, 2025.

Our common stock began trading on the OTCQB on a split-adjusted basis on August 7, 2025 (the “Effective Date”) under the ticker symbol “SPRBD”. Our common stock will resume trading on the Nasdaq Capital Market so long as we remains in compliance with the minimum bid price requirement under Nasdaq Listing Rule 5450(a)(1) for 20 consecutive trading days following the Effective Date, inclusive. The Hearings Panel will maintain jurisdiction over us until October 20, 2025, and should we become non-compliant with any Nasdaq Listing Rule during that period, we will be required to advise the Hearings Panel on our plan to cure such listing deficiency.

There can be no assurance that we will remain in compliance with the Minimum Bid Price Requirement. 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