Medtech company BioSig soars on news of Nasdaq relisting

Shares of BioSig Technologies, a medical technology company focused on deciphering the body’s electrical signals, particularly heart rhythms, surged 34% in over-the-counter (OTC) trading on Tuesday, October 22. The rally followed the company’s announcement that starting today, Wednesday, October 23, its shares would resume trading on the main Nasdaq exchange, after Nasdaq granted BioSig a grace period to regain compliance with the minimum stockholders’ equity requirement.

Details

On Tuesday, BioSig Technologies stock gained 34% in OTC trading to $0.67 per share. For the last 12 months, it is still down more than 88%.

BioSig announced that, having been delisted in June by Nasdaq and thus  relegated to the OTC market for failing to meet listing requirements, it has now been given a grace period until March 7, 2025, to regain compliance, with the stock to start trading again on the Nasdaq today. BioSig had been found to be in noncompliance with Nasdaq’s minimum market value standard of $35 million. As of Tuesday, the company’s market capitalization stood at $8.3 million.

About BioSig

This is not the first time BioSig Technologies has faced challenges — and managed to bounce back. The company was founded in February 2009 by Kenneth L. Londoner, a former money manager who, in his own words, developed an interest in building businesses and left Wall Street after the 9/11 attacks. An inventor approached him with an idea around cardiology technology, which eventually led to the creation of BioSig. The company developed Pure EP, a platform that records heart rhythms and helps doctors better understand the origins of arrhythmias. According to BioSig, it delivers cleaner recordings and filters out noise better than competitors.

BioSig initially planned to launch Pure EP in 2017, but it only received regulatory approval in 2018. While the product was approved, regulators did not find it groundbreaking. Around the same time, two key employees left the company. White Diamond Research, in a blog on Seeking Alpha, described their departure as a strange move, considering the product’s upcoming market launch: “It’s as if they were climbing a tall mountain, just to quit right before they reached the top. Their resignations would make more sense if the more correct analogy is they quit right before they reached the edge of a cliff.”

BioSig did not go off the cliff, however. Its stock in fact soared to record highs in 2020 amid the pandemic, as BioSig, like many companies, tested potential treatments for the virus. But investor interest waned over time, and the share price plummeted. Meanwhile, the Pure EP platform, now available on the market, has yet to generate much revenue, as the company has admitted. In the second quarter of 2024, BioSig’s top line came in at just $13,000, translating into a bottom-line loss of nearly $4 million. Since the start of the year, BioSig has cut costs, including through layoffs.

In March, Nasdaq raised concerns about the company’s viability, suggesting that BioSig might have no operating business and be a “public shell… in view of workforce reductions and resignations of members of the board of directors and officers.” Additionally, BioSig’s share price had fallen below the $1 per share mark, violating Nasdaq’s listing rules. The company managed to fend off these concerns initially before Nasdaq delisted the stock in June due to insufficient stockholders’ equity. On that day, BioSig lost 70% of its market value.

Stock performance 

According to MarketWatch, a single analyst is covering the company, rating it a “buy” at a target price of $2.50 per share, for upside of over 270% versus the most recent closing price.