HOUSTON, May 24, 2024 — Nutex Health Inc. ("Nutex Health" or the "Company") (NASDAQ: NUTX), a physician-led, technology-enabled integrated healthcare delivery system comprised of 21 state-of-the-art micro hospitals in nine states and primary care-centric, risk-bearing physician networks, today announced that it had had received a staff determination letter on May21, 2024 from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, due to the Company's non-compliance with the minimum $1.00 bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"), the Company's Common Stock would be scheduled for delisting from The Nasdaq Capital Market and would be suspended for trading at the opening of business on May 30, 2024 unless the Company timely requests a hearing before an independent Nasdaq Hearings Panel (the "Panel") by May 28, 2024.
On May 23, 2024, the Company submitted a request for a hearing to appeal the Staff's delisting determination. Also on May 23, 2024, Nasdaq notified the Company that the delisting action has been stayed, pending a final decision by the Panel. A hearing has been scheduled for July 9, 2024. The Company intends to provide its written submission by the expedited review deadline of May 30, 2024. Based on such submission, the Panel may determine that an oral hearing is not necessary to grant the Company an exemption to gain compliance with the Minimum Bid Price Requirement.
The Company's Board of Directors on April 24, 2024 approved a reverse stock split of its Common Stock at a split ratio of between 1-for-2 and 1-for-16. Pending approval at the Company's annual shareholder meeting on June 17, 2024, the board expects to authorize a reverse stock split at a ratio within such range as soon as practicable after that date, with the intent to regain compliance with the Nasdaq's Minimum Bid Price Requirement. The Company may not regain compliance and may not be able to obtain a favorable final decision from the Panel.
While the hearing process is pending, our Common Stock will continue to trade on Nasdaq.
About Nutex Health Inc.
Headquartered in Houston, Texas and founded in 2011, Nutex Health Inc. (NASDAQ: NUTX) is a healthcare management and operations company with two divisions: a Hospital Division and a Population Health Management Division.
The Hospital Division owns, develops and operates innovative health care models, including micro-hospitals, specialty hospitals, and hospital outpatient departments (HOPDs). This division owns and operates 20 facilities in 8 states.
The Population Health Management division owns and operates provider networks such as Independent Physician Associations (IPAs). Through our Management Services Organization (MSO), we provide management, administrative and other support services to our affiliated hospitals and physician groups. Our cloud-based proprietary technology platform aggregates clinical and claims data across multiple settings, information systems and sources to create a holistic view of patients and providers, allowing us to deliver greater quality care more efficiently.
Forward-Looking Statements
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. When used in this press release, the words or phrases "will", "will likely result," "expected to," "will continue," "anticipated," "estimate," "projected," "intend," "goal," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, many of which are beyond the control of the Company. Such uncertainties and risks include, but are not limited to, our ability to successfully execute our growth strategy, changes in laws or regulations, including the interim final and final rules implemented under the No Surprises Act, economic conditions, dependence on management, dilution to stockholders, lack of capital, the effects of rapid growth upon the Company and the ability of management to effectively respond to the growth and demand for products and services of the Company, newly developing technologies, the Company's ability to compete, conflicts of interest in related party transactions, regulatory matters, protection of technology, lack of industry standards, the effects of competition and the ability of the Company to obtain future financing. An extensive list of factors that can affect future results are discussed in the Annual Report on Form 10-K for the year ended December 31, 2023 and its Current Report on Form 10-Q for the periods ended March 31, 2024 under the heading "Risk Factors" in Part I, Item IA thereof, and other documents filed from time to time with the Securities and Exchange Commission. Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed within this press release.
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