Thread by @TwongStocks

$EVFM is an example of peak management hubris. They just announced they will be delisted by NASDAQ. How did they get to this point? A 🧵
/1 #biotech #trashco

On 23 Aug 2021, $EVFM was notified by NASDAQ that they were non-compliant with the min $1 bid price. Compliance deadline was 21 Feb 2022.

They weren't compliant by the Feb deadline. So they requested a hearing. /2

Hearing held on 31 Mar. On 6 Apr, NASDAQ told $EVFM the compliance deadline was extended until 20 May.

To regain compliance, $EVFM initiated a 1:15 RS. From 6-19 May (10 trading days), EVFM was over $1.

Everything good now, right? Not so fast. /3

After 10 days above $1, $EVFM announced an offering on May 20th. Price immediately tanked below $1.

One major issue. NASDAQ DID NOT TELL THEM THEY REGAINED COMPLIANCE.

With the stock tanking immediately after the offering announcement, compliance was withheld. /4

Another hearing on 8 June. Deadline extended again, thru 22 Aug. NASDAQ gave $EVFM a list of conditions. Detailed here: sec.gov/ix?doc=/Archiv…

This included filing a proxy by 5 July for shareholder approval of another RS, shareholder meeting by 3 Aug, & RS effected by 9 Aug. /5

A major issue: $EVFM FAILED TO FOLLOW NASDAQ'S CONDITIONS.

They never filed any proxies to approve another RS. Never held a special shareholder meeting. So no RS by 9 Aug. Which means, no way to regain compliance by the deadline. /6

Peak hubris by $EVFM.

This could have been avoided if they simply waited for NASDAQ to grant compliance, before filing the offering in May.

They also could have complied with NASDAQ's terms and did another RS by 9 Aug.

Today's delisting was entirely self-inflicted by mgmt.