PainReform Responds to Nasdaq Equity Notification: Next Steps

PainReform's Important Announcement Regarding Nasdaq Notification

Recently, PainReform Ltd. (Nasdaq: PRFX), a company dedicated to innovating established pharmaceutical therapies, received a notification from the Nasdaq Stock Market. This notice indicates that the company is currently not meeting the minimum stockholders’ equity requirement of $2.5 million as outlined in Nasdaq Listing Rule 5550(b)(1). While this news may raise some concerns among investors, it is important to highlight that this notification does not immediately impact the trading or listing of PainReform's shares.

Understanding the Nasdaq Minimum Equity Rule

Under the Nasdaq guidelines, companies must adhere to certain financial benchmarks to maintain their listed status. In PainReform's case, the company can either achieve a minimum stockholders’ equity of $2.5 million or uphold a market value of listed securities of no less than $35 million. Alternatively, companies can demonstrate profitability by generating net income of at least $500,000 in the most recent fiscal year or during two of the last three completed fiscal years.

The Immediate Impact on Trading

Despite the notification from Nasdaq, there is no immediate effect on the operations or trading activities of PainReform's ordinary shares. As of now, the shares continue to trade under the symbol “PRFX” on the Nasdaq Capital Market. This status allows investors to continue trading their shares without any disruptions while the company works towards compliance.

Regaining Compliance: Next Steps for PainReform

PainReform has a timeframe of 45 days from the date of the notice to devise a strategic plan aimed at regaining compliance with Nasdaq's Minimum Equity Rule or to meet an alternative continued listing standard. If their proposed plan is accepted by Nasdaq, the company could potentially be granted a compliance extension of up to 180 calendar days to address the issues and fulfill the requirements.

A Closer Look at PainReform's Pipeline and Innovations

Founded with the mission to reformulate existing therapeutics, PainReform has made significant strides in the pharmaceutical sector, particularly with its lead product, PRF-110. This innovative solution utilizes ropivacaine, a well-known local anesthetic, aimed at providing superior postoperative pain relief. By applying a proprietary extended-release drug delivery system, PRF-110 can ensure sustained pain alleviation with minimal need for repeat doses, thereby potentially reducing reliance on opiates.

The Importance of PRF-110 in Postoperative Care

PRF-110 is specifically designed to be administered directly into the surgical wound prior to closure, allowing for localized pain management. This approach not only helps patients manage their postoperative discomfort effectively but also creates an attractive alternative in pain relief strategies, highlighting the importance of pain management in today's healthcare landscape.

Company Contact Information

Investors or interested parties can reach out to PainReform's investor relations team for further information or inquiries. Crescendo Communications, LLC can be contacted at 212-671-1021 or via email at prfx@crescendo-ir.com. Additionally, Dr. Ehud Geller, PainReform’s Chairman and interim Chief Executive Officer, is available for contact at +972-54-4236711 or via email at egeller@medicavp.com.

Frequently Asked Questions

What does the Nasdaq notification mean for PainReform?

The Nasdaq notification indicates that PainReform currently does not meet the required minimum stockholders’ equity, but it does not affect the trading of its shares immediately.

How long does PainReform have to respond to the notification?

PainReform has 45 days to submit a plan to regain compliance and the opportunity to extend this period by up to 180 days if Nasdaq approves their plan.

What are the potential consequences if PainReform fails to comply?

If PainReform fails to regain compliance within the given periods, it could lead to the suspension and delisting of its shares from the Nasdaq market.

What is PRF-110?

PRF-110 is PainReform's lead product, focused on delivering localized postoperative pain relief using a proprietary extended-release formulation.

How can I contact PainReform for more information?

For inquiries, you can contact PainReform through Crescendo Communications at 212-671-1021 or directly reach out to Dr. Ehud Geller at +972-54-4236711.

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