Hail Mary play: Struggling medical firm based in West Palm Beach tries to stay on Nasdaq


Gov. Rick Scott visits Rennova Health in West Palm Beach. The company was known as Medytox at the time.

Urine-testing firm Rennova Health Inc. has struggled to survive a rough 2016, a year that has included a sharp drop in revenue, the resignations of the CFO and the chairman, a lawsuit from the landlord for unpaid rent at company headquarters in West Palm Beach, a 90 percent decline in the share price and a delisting notice from the Nasdaq.

Rennova (Nasdaq: RNVA) hopes to stop the delisting by boosting shares back above $1. They traded at 13 cents on Wednesday. Its solution? A reverse stock split at a ratio between 1-for-10 and 1-for-30.

“The intent of any reverse stock split would be to increase the per share trading price of our common stock on The Nasdqaq Capital Market to meet and maintain compliance with the listing requirements,” the company told shareholders.

Rennova’s owners are scheduled to vote on the move at the company’s annual meeting Dec. 22.

UPDATE: Rennova said in a Securities and Exchange Commission filing Thursday that it has “not made the last three required payments under a senior secured convertible debenture with an outstanding principal amount of $3 million, and [we] currently do not have the financial resources to repay this obligation.”

The company also owes $333,333 on two promissory notes.

Rennova’s work force has shrunk from 198 employees in March to 144 employees as of Dec. 1, according to regulatory filings.

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