Item 8.01 Other Events.
As previously reported, on August 29, 2022, eFFECTOR Therapeutics, Inc. (the “Company”) received written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company was not in compliance with the minimum bid price requirement because its common stock had failed to maintain a minimum bid price of $1.00 or more for 30 consecutive business days.
On June 15, 2023, the Company received a letter from Nasdaq stating that the Company has regained compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) and the minimum bid price matter is now closed.
In addition, as previously reported, on May 17, 2023, the Company received written notice from Nasdaq indicating that the Company was not in compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1). At that time, the Company did not meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations. Under Nasdaq’s continued listing requirements, the Company must have a minimum stockholders equity of $2.5 million, or $35.0 million in market value of listed securities or $500,000 of net income, as set forth in Nasdaq Listing Rules 5550(b)(1), or 5550(b)(2), or 5550(b)(3), respectively.
On June 14, 2023, the Company received a letter from Nasdaq stating that for 10 consecutive business days, the Company’s market value of listed securities had been $35.0 million or greater. Accordingly, Nasdaq determined that the Company was in compliance with Nasdaq Listing Rule 5550(b)(2), and the stockholders’ equity matter is now closed.
