The Nasdaq stock exchange has notified healthcare data and analytics company Veradigm Inc., the former Allscripts, that its shares will be delisted.
In January, Healthcare Innovation detailed recent financial turbulence at Veradigm. An independent investigation into financial issues by the board’s audit committee led to directors demanding the resignations of CEO Rick Poulton and CFO Leah Jones. Yin Ho, a director of Chicago-based Veradigm since early last year, has been interim CEO since then and Lee Westerfield has stepped in as interim finance chief.
At the time the company stated that shortcomings in its audit and financial controls functions led to revenues being overstated by about $20 million over the course of 15 months in 2021 and 2022, and because it could not file its required financial reports in time, the Nasdaq stock exchange started proceedings to delist Veradigm shares.
A Nasdaq Hearings Panel has determined to delist the common stock of the company from Nasdaq because of non-compliance issues.
Trading in Veradigm’s common stock will be suspended effective Feb. 29, 2024. Although the company has the right to have the decision reviewed, Veradigm said it does not intend to request that the Nasdaq Listing and Hearing Review Council review the decision.
The company remains noncompliant with Nasdaq Listing Rule 5250(c)(1) because it has not filed its Annual Report on Form 10-K for the year ended December 31, 2022 or its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023 (together with the Q1 Form 10-Q and the Q2 Form 10-Q). Also the company remains noncompliant with Nasdaq Listing Rule 5620(a), which requires companies listing common stock to hold an annual meeting of stockholders no later than one year after the end of the company’s fiscal year.
Veradigm said it is working diligently to file the Form 10-K and the Form 10-Qs, and ultimately to regain compliance with all of the Nasdaq Listing Rules and restore its listing as soon as practicable; however, it said that “no assurance can be given as to the definitive date on which such periodic reports will be filed or whether the company will ultimately regain compliance with all of the Nasdaq Listing Rules and return to being listed on The Nasdaq Global Select Market in the future.”
While the company’s common stock is suspended from trading on Nasdaq, it expects that its shares will be quoted on an over-the-counter market with its existing ticker symbol (MDRX).
The company also said the delisting constitutes a “make-whole fundamental change” under the indenture pursuant to which the company’s outstanding convertible notes were issued.
The company's shares were trading at $7.10 on Feb. 28, down 33.6 percent for the year to date.
