It’s been a whirlwind few months for BioSig Technologies Inc., a medical technology company based in Westport.
The company, which develops signal processing equipment that can diagnose heart malfunctions, went from announcing a new chief executive officer in April and new board members in May, while also closing a $3 million direct offering last month, to being notified earlier this month that it would be delisted from the Nasdaq stock market.
According to filings with the Securities and Exchange Commission, Nasdaq informed the company on June 10 that its stock would be delisted due to the company’s “continued non-compliance with the minimum stockholders’ equity requirement” set by the market.
Coincidentally, the company announced the same day that it had appointed Ferdinand Groenewald, a certified public accountant who serves as vice president of finance at Alaunos Therapeutics Inc., as its interim chief financial officer and principal accounting officer. He succeeded Frederick D. Hrkac, who had resigned as CFO and was appointed to the BioSig board.
Trading in the company’s common stock, under the symbol BSGM, was subsequently suspended on June 12, though Nasdaq said the stock “should be eligible” to trade on the over-the-counter market’s “Pink Current Information tier,” or OTCPK.
As of Thursday, the stock opened trading on the OTCPK at 37.8 cents per share, according to Yahoo Finance.
On Wednesday, BioSig filed a notice with the SEC stating that it is seeking approval for its stock to trade on the OTC Market’s OTCQB trading platform. The company also said it has appealed the decision to delist its stock to the Nasdaq Listing and Hearing Review Council “in an effort to maintain the company’s listing on Nasdaq.”
The delisting was reported less than two months after BioSig announced on April 30 the appointment of Anthony Amato as its CEO. Amato previously had served as the head of Bridge Associates International Pharmaceutical Consulting (BAIPC), which BioSig had hired on April 4 “to advise on business model strategies.”
On May 3, the company also announced appointments to its “now fully constituted” board of directors, which has five members, including Amato and three who are classified as independent directors, including Hrkac.
On May 21, Amato issued a letter to shareholders, stating that BioSig had made a presentation on May 7 to the Nasdaq Hearings Panel and was represented during that presentation by a “top advisory firm well known for working on Nasdaq compliance matters.”
Amatao stated in the letter that before the May 7 hearing, BioSig “was informed by Nasdaq Listing Qualifications staff that it had regained compliance with the minimum bid price requirement as set forth in Listing Rule 5550(a)(2).”
He said that, at the hearing, the company addressed “the remaining compliance issues and will update shareholders once the company receives further communication from the Nasdaq Panel.”
Amato closed his letter to shareholders by stating that he wanted to “reiterate my commitment to restoring shareholder value and will work tirelessly to achieve specific goals I set prior to accepting the CEO position.”
He added, “I want to thank our supportive shareholders for their patience and understanding as we move forward.”
The company was subsequently informed on June 10 that Nasdaq would delist its stock.
The delisting also followed a $3 million registered direct offering of an aggregate of nearly 1.6 million shares of its common stock at a purchase price of $1.91 per share, and a concurrent private placement of unregistered warrants to purchase up to approximately 1.6 million shares of common stock at an exercise price of $1.78 per share.
BioSig said the gross proceeds from the offering were approximately $3 million, before deducting fees and other expenses. It said it intended to use the net proceeds for working capital and general corporate purposes.
Asked for comment Thursday, Amato said via email that the company does “not have any comments at this time.”
