G Medical Innovations Holdings Ltd. Announces Receipt of Nasdaq Hearings Panel’s Decision to Grant Exception for Continued Listing

Rehovot, Israel, May 15, 2023 (GLOBE NEWSWIRE) -- G Medical Innovations Holdings Ltd. (Nasdaq: GMVD) (the “Company”) announced today that, on May 11, 2023, the Company received notice from the Hearings Panel (the “Panel”) of the Nasdaq Stock Market LLC (“Nasdaq”) that the Panel has granted the request of the Company to continue its listing on Nasdaq, subject to the conditions described below.

As previously disclosed by the Company, on November 22, 2022, the Company received a deficiency letter from the Listing Qualifications Department of the Nasdaq notifying it that, based on its shareholders’ deficit of $1,240 thousand as of June 30, 2022, as reported in the Company’s Report of Foreign Private Issuer on Form 6-K on November 18, 2022, the Company was no longer in compliance with the minimum shareholders’ equity requirement for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1), which requires listed companies to maintain shareholders’ equity of at least $2.5 million. The Company had 45 calendar days, or until January 6, 2023, to submit a plan to regain compliance. The Company submitted its compliance plan on January 6, 2023 and made a subsequent submission on January 19, 2023. On February 16, 2023, the Company received a letter from the Staff of Nasdaq notifying that Nasdaq had determined to delist the Company’s Ordinary Shares and tradeable warrants from Nasdaq based on (i) non-compliance with the minimum $2,500,000 stockholders’ equity requirement for continued listing set forth in Nasdaq Listing Rule 5550(b) and (ii) providing the Staff a submission of information that contained material misrepresentations, in violation of Nasdaq Listing Rule 5250(a)(1), in relation to the Company’s extraordinary general meeting of shareholders, which was adjourned on February 9, 2023 and ultimately held and concluded on February 16, 2023. On February 23, 2023, the Company requested a hearing before the Panel, which stayed any delisting or suspension action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing.

On May 11, 2023, the Panel granted the Company’s request to continue its listing on Nasdaq subject to the requirement that, by no later than August 4, 2023 (the “Exception Period”), it provide the Panel with unaudited interim financial statements for the second quarter of 2023 and demonstrate to the Panel that the Company continues to meet the equity requirement. Upon review of the Company’s interim financial statements for the second quarter of 2023, the Panel will decide if the Company has demonstrated an ability to maintain compliance with the continued listing requirements on a long-term basis. In addition, from May 11, 2023 until the end of the Exception Period, the Panel reserves the right to reconsider the terms of this exception based on any event, condition or circumstance that exists or develops that would, in the opinion of the Panel, make continued listing of the Company’s securities on Nasdaq inadvisable or unwarranted. Until the end of the Exception Period, the Company is required to provide prompt notification to the Panel of any significant events that may affect the Company’s compliance with Nasdaq requirements.