NEW YORK – Sema4 said Friday after the close of the market that it had received a notification from Nasdaq that the firm is out of compliance with the minimum bid price for continued listing on the Nasdaq Global Select Market.
Stamford, Connecticut-based Sema4's stock price had been below $1 per share for 30 consecutive trading days when it received the Nasdaq notification Dec. 28. The firm waited two days to disclose the news in a filing with the US Securities and Exchange Commission on the last business day of 2022.
Sema4 has 180 days, or until June 26, to regain compliance with exchange rules by having a closing bid price of at least $1 per share for 10 consecutive trading days. The firm could extend the compliance period by an additional 180 days if it chooses to transfer its listing to the Nasdaq Capital Market.
The company also said in the same SEC filing that it settled a series of legal claims with an unnamed health insurance company for alleged overpayments from the payor for services including multigene tests like carrier screening. Under the terms of the settlement, Sema4 will return $42 million to the payor in four years of interest-free payments, starting with a $15 million installment that was due before the end of 2022.
The unspecified payor agreed to enter into a new three-year in-network contract with Sema4 subsidiary GeneDx within 90 days of the settlement date.
Sema4 acquired GeneDx from Opko Health in April 2022 for $623 million and has been in turmoil ever since. The firm announced two restructurings and three rounds of job cuts since the acquisition closed. Its stock price tumbled immediately following the most recent restructuring announcement on Nov. 14 — the same day it reported its third quarter financial results — and has not recovered.
On Tuesday morning, Sema4's shares were trading at $.27.