Clarus Therapeutics (CRXT) Stock: Why It Fell 36.94%

By Amit Chowdhry ● Aug 31, 2022
  • The stock price of Clarus Therapeutics (CRXT) fell by 36.94% in the most recent trading session. This is why.

The stock price of Clarus Therapeutics (CRXT) fell by 36.94% in the most recent trading session.

Continuation of a decline: This is a continuation of a decline in the stock as it fell by 46.52% in the past 5 trading days

Why: The company received a notice of delisting from the Nasdaq for two reasons.

Reason 1: The first notification indicated that as of February 18, 2022, Clarus did not meet the $15 million minimum market value of publicly held shares required to maintain continued listing as set forth in Nasdaq Marketplace Rule 5450(b)(2)(C) (the MVPHS Rule) for the 33-business day period ended February 17, 2022. And the second notification indicated that as of February 18, 2022, Clarus did not meet the $50 million minimum market value of listed securities required to maintain continued listing as set forth in Nasdaq Marketplace Rule 5450(b)(2)(A) (the MVLS Rule) for the 30-business day period ended February 17, 2022. Clarus was given 180 days from the date of notification, or until August 17, 2022, to regain compliance with both of the rules.

Reason 2: On August 22, 2022, Clarus received a staff determination letter from Nasdaq notifying it that it had not regained compliance with the rules. And the letter stated that unless Clarus requests an appeal, Clarus’ common stock would be suspended at the opening of business on August 31, 2022 and that Nasdaq would file a Form 25-NSE with the Securities and Exchange Commission, which will remove Clarus’ securities from listing and registration on the Nasdaq. Upon suspension from Nasdaq, Clarus expects its securities to begin trading on the OTC Markets’ “OTC Pink Market” tier.