Clover Health avoids potential Nasdaq stock delisting

Medicare Advantage-focused insurtech Clover Health has staved off a potential delisting of its stock.

The insurer announced on Friday that it had received notification from Nasdaq that it "has regained compliance with the minimum bid price" as required by the stock exchange. Clover disclosed that it was at risk for delisting in April.

To come back into compliance, Clover's stock had to close at $1 per share or more for 10 consecutive business days, which it completed on July 28.

"Nasdaq has stated that this matter is now closed," the company said in the release.

 As it has recovered from the hiccup, Clover said that it will reevaluate its plans to mitigate the problem, including a potential reverse stock split or authorized share reduction. The insurer will hold a special shareholder meeting on Aug. 30 to discuss the proposals.

The news comes as the insurer is preparing to release its second-quarter financial results. Like its peers in the insurtech space, Clover Health has yet to turn a profit but its top brass sees a light at the end of the tunnel for its financial woes in the next few years.

The company has also settled several shareholder suits over the past several months, which allege that the company did not disclose an investigation from the Department of Justice and other key concerns ahead of its initial public offering in 2021.

Clover posted a $72.6 million loss in the first quarter of 2023, as well as $527.8 million in revenue.