Clover Health's stock could be delisted from Nasdaq, the company disclosed in a filing with the Securities and Exchange Commission.
The company received a written notice from Nasdaq April 20 stating that its stock had closed below the minimum $1 per share threshold for 30 consecutive days. Clover has until Oct. 17, 2023, 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 is not able to regain compliance in the 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 intends to actively monitor 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 wrote in the filing.
A Clover Health spokesperson told Becker's in an emailed statement that the company is "focused on building a strong, sustainable business, and at this time no determination has been made with respect to any specific course of action in connection with the notice from Nasdaq."
Clover's stock closed at 77 cents per share April 24.
Bright Health, another insurtech company, is also facing a possible delisting from the New York Stock Exchange. The company received notice that it fell below the $1 per share threshold on Dec. 6. The company is asking its shareholders to OK a reverse stock split. Bright Health's annual meeting is slated for May 4. If the request is approved, the reverse stock split could be effective the following day.