MiMedx stock was taking quite the hit Wednesday on news that the company is being delisted from the Nasdaq.
According to MiMedx (NASDAQ:MDXG), its stock will be delisted from Nasdaq at the start of trading tomorrow. The reason for the delisting has to do with the company’s accounting principals not meeting Securities and Exchange Commission (SEC) reporting obligations.
The company notes that it doesn’t have any plans to appeal Nasdaq’s decision to delist MiMedx stock from the exchange. However, it does point out that MiMedx stock will still be available for public trading. It will be moving to the OTC Market and will retain the MDXG stock ticker.
MiMedx says that Nasdaq was originally giving the company until Feb. 25, 2019 to get its accounting principals in line with regulations. Unfortunately for MiMedx stock, the company says that it likely won’t be able to get everything in order by this time. This date was already an extension for the company from Nasdaq.
The delisting of MiMedx stock from the Nasdaq isn’t the only bit of MDXG news the company has today. It also announced that it is adopting a limited duration shareholder rights plan as a result of the delisting.
The limited duration shareholder rights plan will have the company protecting itself from potential takeover efforts. This is possible by diluting the value of its own shares should an investor obtain a 10% stake in the company through the open market or other means.
MDXG stock was down 31% as of noon Wednesday and is down 52% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.