Ocean Biomedical, Inc. (NASDAQ: OCEA) finds itself entangled in compliance concerns following the receipt of a notice from The Nasdaq Stock Market LLC (“Nasdaq”) regarding the late filing of its quarterly report on Form 10-Q for the period ended September 30, 2023.
This development underscores the challenges faced by the biopharma company and raises uncertainties regarding its regulatory standing and market performance.
Compliance Notice from Nasdaq
On November 22, 2023, Ocean Biomedical received a notice from Nasdaq, citing non-compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of its Form 10-Q.
Nasdaq’s listing rule mandates listed companies to timely file all required periodic reports with the Securities and Exchange Commission (SEC).
Ocean Biomedical’s failure to adhere to this requirement has prompted Nasdaq to initiate compliance proceedings against the company.
Read More: Chemours Faces Executive Misconduct and Financial Implications
Reasons for Delayed Filing
Ocean Biomedical attributes the delay in filing its Form 10-Q to an interpretation issued by the Staff of the U.S. Securities and Exchange Commission (SEC) pertaining to certain accounting and reporting standards for SPAC-related companies with “Forward Purchase Agreements.”
The company, upon receiving this interpretation, opted to restate its consolidated financial statements for the quarters ended March 31, 2023, and June 30, 2023, to ensure compliance with the SEC’s guidance.
The restatement primarily concerns the accounting treatment of “backstop agreements” with various entities, including Vellar Opportunity Fund SPV LLC-Series 3, Meteora Special Opportunity Fund I, LP, Meteora Select Trading Opportunities Master, LP, and Polar Multi-Strategy Master Fund.
Ocean Biomedical’s decision to restate its financial statements reflects its commitment to transparent and accurate financial reporting, albeit at the cost of compliance delays.
Nasdaq’s Requirements and Company’s Response
In response to Nasdaq’s compliance notice, Ocean Biomedical is obligated to submit a plan to regain compliance by January 22, 2024, and file the delinquent Form 10-Q by May 20, 2024.
While the current notice does not immediately impact the listing or trading of Ocean Biomedical’s common stock on the Nasdaq, further delays in filing could potentially jeopardize its market standing.
Ocean Biomedical reassures stakeholders of its intention to expedite the filing of the delinquent Form 10-Q and comply with Nasdaq’s requirements.
The company’s proactive approach to addressing compliance issues reflects its commitment to regulatory adherence and transparent communication with investors.
Also Read: Xerox Holdings Corporation Announces Pricing of Convertible Senior Notes
About Ocean Biomedical
Ocean Biomedical, Inc. is a biopharma company headquartered in Providence, Rhode Island, with a distinct business model focused on accelerating the development and commercialization of promising therapeutic assets sourced from research universities and medical centers.
With a portfolio encompassing advancements in lung cancer, brain cancer, pulmonary fibrosis, and malaria prevention and treatment, Ocean Biomedical aims to deliver impactful solutions to global healthcare challenges.
Implications and Future Outlook
The compliance notice from Nasdaq adds a layer of uncertainty to Ocean Biomedical’s regulatory landscape and market performance.
As the company navigates through the compliance process and works towards expediting the filing of its Form 10-Q, investors and stakeholders will closely monitor developments and assess the implications for Ocean Biomedical’s financial stability and strategic trajectory.
Transparent communication and proactive regulatory compliance efforts will be critical for Ocean Biomedical to maintain investor confidence and safeguard its market standing amidst regulatory scrutiny.
Read Next: Rail Vision Deploys Groundbreaking AI Safety System on National Railways Line
DISCLAIMER
You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of SmallCapStocks.com (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.
The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov; the Financial Industry Regulatory Authority (the "FINRA") at www.FINRA.org, and relevant State Securities Administrator website and the OTC Markets website at www.otcmarkets.com. The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at www.sec.gov/consumer/cyberfr.htm, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.
The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.
By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: www.SmallCapStocks.com/Disclaimer and www.SmallCapStocks.com/Privacy-Policy
By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.
I’m Jackson Hartwell, a writer who specializes in dissecting current business events. I’m dedicated to providing you with clear and concise insights into the world of politics, making it easier to understand the latest news and developments.
