Heart Test Labs (HSCS) Delisted from Nasdaq on Jan 30

TL;DR

**HSCS and HSCSW are getting kicked off Nasdaq, expect a rough ride for the stock.**

AI Summary

Heart Test Laboratories, Inc. (HSCS) announced on January 30, 2024, that its common stock (HSCS) and warrants (HSCSW) will be delisted from The Nasdaq Stock Market LLC. This delisting is due to the company's failure to satisfy a continued listing rule or standard, which means it no longer meets Nasdaq's requirements to be publicly traded on that exchange. This matters to investors because delisting often leads to a significant drop in stock price and reduced liquidity, making it harder to buy or sell shares.

Why It Matters

Delisting from a major exchange like Nasdaq can severely impact a company's reputation, stock price, and ability to raise capital, making its shares less attractive and harder to trade for investors.

Risk Assessment

Risk Level: high — Delisting from a major exchange like Nasdaq significantly increases investment risk due to reduced liquidity, potential price drops, and a move to less regulated markets.

Analyst Insight

A smart investor would consider selling their shares of HSCS or HSCSW due to the high risk associated with delisting, which typically leads to reduced liquidity and further price depreciation, or at least thoroughly re-evaluate their investment thesis given the increased uncertainty.

Key Players & Entities

• Heart Test Laboratories, Inc. (company) — the registrant being delisted
• The Nasdaq Stock Market LLC (company) — the exchange from which the securities are being delisted
• January 30, 2024 (date) — date of earliest event reported regarding delisting
• HSCS (company) — trading symbol for Common Stock
• HSCSW (company) — trading symbol for Warrants

Forward-Looking Statements

• Heart Test Laboratories, Inc.'s stock price will experience significant volatility and likely decline further. (HSCS) — high confidence, target: Q1 2024
• The company will likely trade on an over-the-counter (OTC) market following its delisting from Nasdaq. (Heart Test Laboratories, Inc.) — high confidence, target: Q1 2024

FAQ

Key Financial Figures

• $0.001 — closing bid price of our common stock, $0.001 par value per share ("Common Stock") fo
• $1 — ment to maintain a minimum bid price of $1 per share (the "Minimum Bid Price Requi

Filing Documents

• hscs-20240130.htm (8-K) — 48KB
• 0000950170-24-009160.txt ( ) — 197KB
• hscs-20240130.xsd (EX-101.SCH) — 48KB
• hscs-20240130_htm.xml (XML) — 6KB

01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. As previously reported, on August 2, 2023, Heart Test Laboratories, Inc. (the "Company") received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") indicating that, based upon the closing bid price of our common stock, $0.001 par value per share ("Common Stock") for the previous 30 consecutive business days, we no longer met the requirement to maintain a minimum bid price of $1 per share (the "Minimum Bid Price Requirement") and were required to regain compliance with the Minimum Bid Price Requirement by January 29, 2024. On January 30, 2024, the Company received a letter from Nasdaq advising that the Company had been granted an additional 180-day extension to July 29, 2024, to regain compliance with the Minimum Bid Price Requirement, in accordance with Nasdaq Listing Rule 5810(c)(3)(A). If the Company does not regain compliance within the allotted compliance period, Nasdaq staff will provide notice that the Company's Common Stock will be subject to delisting. The Company would then be entitled to appeal that determination to a Nasdaq hearings panel. The Company will continue to monitor the closing bid price of its Common Stock and may, if necessary, implement a reverse stock split of its outstanding securities, to regain compliance with the Minimum Bid Price Requirement. There can be no assurance that the Company will regain compliance with the Minimum Bid Price Requirement during this 180-day extension.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HEART TEST LABORATORIES, INC. Date: January 31, 2024 By: /s/ Andrew Simpson Name: Title: Andrew Simpson President, Chief Executive Officer, and Chairman of the Board of Directors

View Full Filing

View this 8-K filing on SEC EDGAR