For the second time in just shy of a year, Clover Health is facing a possible Nasdaq delisting.
In an April 5 filing with the Securities and Exchange Commission, Clover disclosed that it received a notice from Nasdaq that its stock had closed below the minimum $1 per share threshold for 30 consecutive days. The company has until Sept. 30 to regain compliance.
To regain compliance, Clover's stock must close at $1 or above for 10 consecutive business days, according to the filing. If it fails to regain compliance in that time span, Clover may be eligible for an additional 180-calendar day compliance period if it switches from the Nasdaq Global Select Market to the Nasdaq Capital Market.
"The Company is actively monitoring the closing bid price of its Common Stock and will consider all available options to regain compliance with the minimum bid price requirement, which may include seeking stockholder approval to effect a reverse stock split," Clover said in the filing.
On April 21, 2023, Clover received a notice from Nasdaq that it faced a possible delisting, but regained compliance on July 28.
Clover Health CEO Andrew Toy recently said he felt good about CMS' 2025 Medicare Advantage rates, contrary to many payer industry groups that decried the rates, saying they are insufficient to cover rising costs in the Medicare Advantage market.
"Ultimately, Clover's advantage sits around believing the future of Medicare is hybridizing the benefits (Vision, dental, grocery etc) of MA with the wide network of Original Medicare," Mr. Toy said. "This rate notice emphasizes why we feel we're in a good place to achieve that."