Another great post on the status and (mis)perceptions :
trustintelligence.com
UPLISTING 101
While both NYSE MKT and NASDAQ have a number of quantifiable and fixed qualification requirements, the former also has a more subjective and qualitative orientation and process than the latter, perhaps because the NYSE MKT has a lower share price threshold than the NASDAQ (which seems somewhat less relevant to me than a Market Cap or Enterprise Value threshold).
In its recent Quarterly result (10Q) SEC filing, Provectus stated that it had qualified under all the objective criteria for both NYSE MKT and for NASDAQ (except for NASDAQ's "$3 for 5 consecutive days" rule).
Why the Wait?
Many investors thought that UPListing to the NYSE MKT would have closely followed the submission of the Provectus 10K filing in March because the NYSE MKT share price, size, and governance requirement had been satisfied by that time. Since then, we have seen an number of financial filings outlining measures that Provectus has taken to strengthen their already strong (based on a historical comparison) cash and credit positions. It seems logical to conclude that this was in response to the NYSE Listing Committee wanting to ensure that only companies that could withstand financial stress will be listed. But we still wait for the announcement....
Breakthrough Therapy Designation
Some investors, distressed over the unexplained seemingly interminable wait for uplisting, have understandingly been trying to figure out the reason(s). This has led to speculation that the NYSE MKT listing people want to see if PV-10 is awarded Breakthrough Therapy Designation (BTD) this month, by the FDA, before acting. While there are no facts to suggest this is true, if you presume that a lot of investors will be more likely to buy the stock if BTD is awarded, it has some logic to it.
On the other hand, if the FDA does not approve BTD, it is not a rejection of PV-10.
It is only the FDA's determination that PV-10 does not qualify under the rules of the BTD program (Make no mistake; I believe it does qualify).
If the BTD application is rejected, Provectus will still be able to continue development of PV-10, one of the safest cancer drug candidates being developed today and the only one with a dual action; killing cancer directly and by stimulating the immune system, all with no debilitating side effects. In other words, failing to qualify for another Special FDA Program (it already has qualified for Orphan Drug Status for melanoma) does not mean the drug has failed, making Provectus unworthy of trading somewhere other than the OTC market. In fact, BTD rejection may not even cause a significant delay of the ultimate NDA submission, given that we learned from recent Moffitt research that PV-10 only requires about 1 week to kill the cancer in injected melanoma tumors.
Without information, investor imagination is free to run wild. It seemed to me that getting the facts was preferable so I asked Provectus Management whether the NYSE going to base its decision on whether or not the FDA approved PV-10 for BTD.
The answer was categorical.
BTD being awarded is not a consideration for the NYSE MKT uplisting.
It is neither an issue or a criterion.
CONCLUSION
That means that we may see the UPlisting happen at any time... just as the FDA may make their decision about BTD for PV-10... at any time.
Personally, my guess if that Provectus will be listed on the NYSE soon, before we hear about the FDA's BTD decision.
I may own, buy, and/or sell the securities mentioned in this post, which is not meant to be investment advice. Everyone should check all material facts with the original source of the information. All original content copyright 2006 through 2014 by Alan Ross |
