Company: ARTL
Filing Date: 2025-07-11
Form Type: S-1
Source: 0001640334-25-001190
Chunk: 13

Company: ARTELO BIOSCIENCES, INC.
Filing Date: 2025-07-11
Form: S-1
Chunk 13
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, the resale of the shares of Common Stock underlying the Warrants to the holder. A holder of a Warrant may not exercise any such Warrant to the extent that such exercise would result in the number of shares of Common Stock beneficially owned by such holder and its affiliates exceeding 4.99% or 9.99% (at the election of the holder) of the total number of shares of Common Stock outstanding immediately after giving effect to the exercise, which percentage may be increased or decreased at the holder’s election not to exceed 9.99% (the “Beneficial Ownership Limitation”).   In connection with the Private Placement and pursuant to the terms of the Purchase Agreement, the Company agreed to prepare and file a registration statement with the SEC registering the resale of the shares of Common Stock and the shares of Common Stock underlying the Pre-Funded Warrants, the $5.82 Warrants and the $10.00 Warrants.   Recent Developments   On May 22, 2025, the Company received a letter from the staff (the “Staff”) of Nasdaq indicating that it is no longer in compliance with the minimum stockholders’ equity requirement for continued listing pursuant to Nasdaq Listing Rule 5550(b)(1), which requires listed companies to maintain stockholders’ equity of at least $2,500,000 or meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations, which the Company does not currently meet. Nasdaq’s notice has no immediate effect on the listing of the Company’s Common Stock on Nasdaq, which continues to trade under the symbol “ARTL.” Pursuant to the notice and the Listing Rules of Nasdaq, the Company submitted a plan to regain compliance with the minimum stockholders’ equity requirement within 45 calendar days of receiving the letter from the Staff. If the Company’s plan to regain compliance is accepted, the Staff can grant an extension of up to 180 calendar days from the date of the Notice to evidence compliance. If the Company’s plan to regain compliance is not accepted, or if it is accepted and the Company does not regain compliance in the timeframe required by Nasdaq, the Staff could provide notice that the Company’s shares of Common Stock are subject to delisting. In such an event, the Company would have the right to request a hearing before a Nasdaq Hearings Panel. The Company is currently evaluating options to regain compliance and intends to timely submit a plan to regain compliance with the minimum stockholders’ equity requirement. Although