Cara Therapeutics Regains Compliance with Nasdaq Minimum Bid Price Requirement

Cara Therapeutics, Inc. (NASDAQ: CARA) announced in a recent 8-K filing that it has successfully regained compliance with the Nasdaq Minimum Bid Price Requirement. The company had previously received a notification letter from Nasdaq regarding its failure to maintain a minimum closing bid price of $1.00 per share over a thirty consecutive business day period.

To address this noncompliance, Cara Therapeutics implemented a series of strategic actions, including a one-for-twelve reverse stock split and a reduction in the total number of authorized shares. These measures were approved by the company’s stockholders at the 2024 Annual Meeting of Stockholders. Following these actions, the company’s common stock began trading on the Nasdaq Capital Market post-split as of December 31, 2024.

On January 16, 2025, Cara Therapeutics received confirmation from Nasdaq that it had regained compliance with the Minimum Bid Price Requirement. The company’s common stock had met or exceeded the $1.00 per share bid price for a period of ten consecutive business days, leading Nasdaq to consider the matter resolved.

Additionally, the filing mentioned another open matter of noncompliance related to the Stockholders’ Equity Requirement. As of the September 30, 2024 quarterly report, Cara Therapeutics fell short of the required minimum stockholders’ equity of $2.5 million. In response, the company submitted a Compliance Plan to Nasdaq, outlining its strategy to address this issue.

The Compliance Plan includes a proposed merger between Cara Therapeutics and Tvardi Therapeutics, Inc. Nasdaq has granted Cara Therapeutics an extension until May 19, 2025, to meet the Stockholders’ Equity Requirement, subject to the successful completion of the merger. The post-merger entity will need to comply with all applicable listing criteria on the Nasdaq Capital Market.

While Cara Therapeutics is working diligently to achieve compliance within the extended timeline, uncertainties remain. Failure to regain compliance within the specified period or meet other Nasdaq listing requirements could result in the delisting of the company’s securities. The company retains the option to appeal a delisting determination to a Nasdaq Hearings Panel.

Forward-looking statements within the filing caution investors about potential risks and uncertainties, including factors that could impact the company’s ability to achieve compliance and maintain its Nasdaq listing. Such statements are subject to change based on evolving circumstances, with Cara Therapeutics committing to update stakeholders on any developments.

For further details on the compliance status and ongoing matters regarding Cara Therapeutics, investors and stockholders are encouraged to refer to the official SEC filings and disclosures by the company.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cara Therapeutics’s 8K filing here.

About Cara Therapeutics

Cara Therapeutics, Inc, a development-stage biopharmaceutical company, focuses on developing and commercializing therapeutics treatment of chronic pruritus in the United States. The company’s lead product is KORSUVA (difelikefalin) injection for the treatment of moderate-to-severe pruritus associated with chronic kidney disease (CKD) in adults undergoing hemodialysis.