OBSV - ObsEva demonstrates compliance with Nasdaq stockholders equity rule

Biopharmaceutical company ObsEva ( NASDAQ: OBSV ) has demonstrated compliance with Nasdaq's minimum stockholders' equity requirement.

In August, the company received a letter from the Nasdaq Stock Exchange regarding its non-compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Global Select Market. It submitted its plan to regain compliance on August 29, 2022.

On November 22, 2022, ObsEva ( OBSV ) announced the sale of all its rights to Ebopiprant to XOMA ( XOMA ) for an upfront payment of $15M. The deal includes provisions for ObsEva to receive future milestone payments of up to $98M upon the achievement of certain development and regulatory milestones as well as  sales milestones relating to the development of Ebopiprant under a license agreement with Organon.

As a result of the transaction, the stockholders' equity of the company as of November 30, 2022 is ~$11.4M (unaudited). The company therefore believes that as of the date hereof the Company has regained compliance with Nasdaq Listing Rule 5450(b)(1)( A ).

Additionally, ObsEva ( OBSV ) recently filed a request to withdraw its previously announced moratorium with the Swiss court considering its over-indebtedness position has been resolved with the upfront proceeds of the transaction.

OBSV shares were up 5% in Wednesday's premarket trading

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